27.06.2022, 13:53
Tesla, Ford and GM Will Raise Prices for Their Electric Cars
Source: OREANDA-NEWS
OREANDA-NEWS High gasoline prices make more consumers consider buying electric vehicles. However, dealership prices for electric cars are going to rise as well, writes The Wall Street Journal.
American automakers are raising prices of electric vehicles to offset the rising cost of components used in batteries. Companies are also capitalizing on high level of consumer interest in electric vehicles as new models enter the market.
Tesla Inc., Ford Motor Co., General Motors Co., Rivian Automotive Inc. and Lucid Group Inc. increased prices for a number of models of electric cars over the past months. So, last week GM raised the price of the GMC Hummer electric pickup truck by $6.25 thousand. Now its price ranges from about $85,000 to $105,000. In 2022, Tesla has also increased the price of its Model Y SUV Performance version three times since the beginning of the year, increasing the price tag by about 9%. Now the cost of the model is $69.9 thousand.
The average price for electric vehicles in the US in May soared by 22% compared to the same period a year earlier and amounted to about $54,000. For comparison, the average price of cars with an internal combustion engine increased by 14% over the same period, to about $44.4 thousand.
The companies say they are trying to offset recent increases in the price of raw materials used to make batteries for electric cars. They are currently the most expensive components of electric vehicles. Lithium, nickel and cobalt prices have nearly doubled since before the coronavirus pandemic, according to AlixPartners LLP, a consulting firm.
Major automakers desire to expand their EV assortment amid tightening of emissions regulations, shareholder concerns about the environmental impact of traditional cars, and Wall Street investor excitement about the growth potential of the EV market.
The cost of developing electric vehicles has doubled over the past two years, experts from AlixPartners calculated. Automakers are expected to spend a total of $526 billion to transition to electric vehicles over a five-year period ending in 2026. Rising commodity prices could complicate this process, analysts say.
American automakers are raising prices of electric vehicles to offset the rising cost of components used in batteries. Companies are also capitalizing on high level of consumer interest in electric vehicles as new models enter the market.
Tesla Inc., Ford Motor Co., General Motors Co., Rivian Automotive Inc. and Lucid Group Inc. increased prices for a number of models of electric cars over the past months. So, last week GM raised the price of the GMC Hummer electric pickup truck by $6.25 thousand. Now its price ranges from about $85,000 to $105,000. In 2022, Tesla has also increased the price of its Model Y SUV Performance version three times since the beginning of the year, increasing the price tag by about 9%. Now the cost of the model is $69.9 thousand.
The average price for electric vehicles in the US in May soared by 22% compared to the same period a year earlier and amounted to about $54,000. For comparison, the average price of cars with an internal combustion engine increased by 14% over the same period, to about $44.4 thousand.
The companies say they are trying to offset recent increases in the price of raw materials used to make batteries for electric cars. They are currently the most expensive components of electric vehicles. Lithium, nickel and cobalt prices have nearly doubled since before the coronavirus pandemic, according to AlixPartners LLP, a consulting firm.
Major automakers desire to expand their EV assortment amid tightening of emissions regulations, shareholder concerns about the environmental impact of traditional cars, and Wall Street investor excitement about the growth potential of the EV market.
The cost of developing electric vehicles has doubled over the past two years, experts from AlixPartners calculated. Automakers are expected to spend a total of $526 billion to transition to electric vehicles over a five-year period ending in 2026. Rising commodity prices could complicate this process, analysts say.
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