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by Rachit Vats, Benzinga Staff Writer
June 26, 2022 9:39 PM | 1 min read

ZINGER KEY POINTS
  • Average US EV prices rose 22% in May to about $54k
  • The growth rate was steeper than gas-powered variants
  • Tesla, GM, Ford, other cos have hiked EV prices


U.S. customers had to pay 22% more last month to buy electric cars amid growing demand and supply woes for EV makers, The Wall Street Journal reported on Sunday.

What Happened: Average EV prices grew 22% year-on-year in May at about $54,000. In comparison, prices for Gas-powered vehicles rose 14% to about $44,400, according to automotive research consultancy J.D. Power.
Tesla Inc

Price Hikes Continue: GM bumped up the price of GMC Hummer electric pickup-truck models by $6,250 last week, citing an increase in commodity and logistics costs. The trucks, which have a waiting period of about two years, are now priced between $85,000 to $105,000.

However, GM also recently lowered the price of its Chevrolet Bolt by $6,000 to about $27,000.

EV market leader Tesla hiked prices in May multiple times and took another round of increases a week ago. The Elon Musk-led company raised its U.S. car prices by $6,000 across various models.

Musk had earlier this year warned the company was facing extensive raw material and logistics costs.
See Also: Tesla Raises US Car Prices By Up To $6000: What Its EVs Cost Now

Ford CFO John Lawler said last week that rising commodity costs had erased the profit the automaker initially expected to make on its electric Mustang Mach-E. The company has raised prices to offset higher input costs, but Lawler said they were not enough to maintain margins.

LINK

Wonder when EV new car affordability tipping point becomes a problem for the masses, as household budgets are hit with 10% inflation on everything, EV prices will continue rise due to supply & demand pressures on limited commodities.

Average EV prices grew 22% year-on-year in May at about $54,000, that's not a price average Joe American will be able to afford in the future, there will be a big disconnect with the wallet/EV car price

Can't see to many British buyers willing to trade in their ex Avis/Hertz cheap as peanuts worthless second-hand diesel Focus for in for $82,000 base model bare bones entry model Mustang Mach E in the future that does not match buyers wallets to cars well? You might get a cheap 7 year old Mustang Mach E, just as the expensive $24,000 battery pack replacement looms on the horizon, there will be a big second hand buyer disconnect never experienced before, who will be left holding the Mach E $24,000 battery packs replacement baby?
 

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$54K doesn't get you the good EV's. A new Tesla Model S Plaid starts at $136K, a Ford Lightning Lariat with extended range starts at $77K, and the blue Chevy Silverado EV in all the commercials is $107K as shown.
EV can be really "good":


OR they can be really "cheap":


But not "good" AND "cheap".
 

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THIS is just more proof that a lot has to change before these things become the norm or mainstream. Especially in these high inflation stagnating wage kinds of times. Besides adding in the lack of infrastructure too. The big wigs really got the cart in front of the horse on this one from big Gov't and Mfrs. all the way down to the Electric Co's.
 

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Not very surprising. Right now electrics are mostly high end and very desirable with long wait lists. Another way of saying it is the manufacturers have a lot of pricing power to pass along cost increases. Then we have the fact that those battery raw materials have gone through the roof, so of course BEV's have much greater raw material cost increases than ICE. AND the price of gas is through the roof, further drawing people to electrics and driving up demand for vehicles with limited availability.
 

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THIS is just more proof that a lot has to change before these things become the norm or mainstream. Especially in these high inflation stagnating wage kinds of times. Besides adding in the lack of infrastructure too. The big wigs really got the cart in front of the horse on this one from big Gov't and Mfrs. all the way down to the Electric Co's.
+1
The one thing that needs to change immediately pertains to the power and influence that government central planners have over the automotive industry and automotive consumers. That power and influence must be nullified. A good start would be to discontinue any and all subsidies for the production of EV and EV components, and to eliminate any and all mandates for "zero emission vehicles". Both of these market distorting measures are directly responsible for the price hikes mentioned in the OP.

As Friedrich Hayek once said, the more the state "plans" the more difficult planning becomes for the individual.
 

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The one thing that needs to change immediately pertains to the power and influence that government central planners have over the automotive industry and automotive consumers. That power and influence must be nullified. A good start would be to discontinue any and all subsidies for the production of EV and EV components, and to eliminate any and all mandates for "zero emission vehicles". Both of these market distorting measures are directly responsible for the price hikes mentioned in the OP. As Friedrich Hayek once said, the more the state "plans" the more difficult planning becomes for the individual.
Yep - too much government in autos and oil/gas/pipelines have screwed everything up. Not just the US - globally.

What a "green" disaster,

I hear Germany has to go back to coal now - how embarrassing. .
 

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Has Chairhomie Xoe been briefed on this? Just buy lektrik, I'm putting petrol out of bidness!

Peter Doocy: "Sir, when will your personal limo, not to mention Air Force One, be lektrik-powered?"
 

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Has Chairhomie Xoe been briefed on this? Just buy lektrik, I'm putting petrol out of bidness!

Peter Doocy: "Sir, when will your personal limo, not to mention Air Force One, be lektrik-powered?"
Electric limo would be easy to do right now, but not yet on Air Force One. Although electric planes are starting to be available.
 

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I love how everyone is completely ignoring first responders who flat out said they are not even close to prepared for a majority EV transport world. So we not only don't have the energy to supply this dream lala land EV world, but incase we see accidents most towns and cities across this entire country say they are all inadequately trained nor do they have the equipment to responde. I remember being told the adults were back in charge, lol anything but it seems!
 

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I love how everyone is completely ignoring first responders who flat out said they are not even close to prepared for a majority EV transport world. So we not only don't have the energy to supply this dream lala land EV world, but incase we see accidents most towns and cities across this entire country say they are all inadequately trained nor do they have the equipment to responde. I remember being told the adults were back in charge, lol anything but it seems!
I don't know about other automakers, but GM has been training fire departments on EV crashes since the Volt came out in 2010.
 

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Electric limo would be easy to do right now, but not yet on Air Force One. Although electric planes are starting to be available.
So the lektrik 747 is Coming Soon! To a theater near you! ??


Lead by example. When Chairman trips going up the stairs of his lektrik 747, I'll START to take this halfway seriously. But none of us is going to live that long.

I love how everyone is completely ignoring first responders who flat out said they are not even close to prepared for a majority EV transport world. So we not only don't have the energy to supply this dream lala land EV world, but incase we see accidents most towns and cities across this entire country say they are all inadequately trained nor do they have the equipment to responde. I remember being told the adults were back in charge, lol anything but it seems!
Everything they say is 180 degrees from the truth. So the kids arein charge. And not-so-bright, behaviorally challenged bullying kids at that. Not nice kids. That's the easy key to interpreting these folks, I call it the 180 World. Thank you Bill Clinton, you were a great instructor on how to interpret psychopath language.
 

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I don't know about other automakers, but GM has been training fire departments on EV crashes since the Volt came out in 2010.
That's correct, GM and its OnStar subsidiary funded first responder training for 2011 Volt prior to its introduction, but at least initially it was limited to a few large metro areas such as San Francisco, Los Angeles, Detroit, and Washington, D.C. About 15 years prior, GM also sponsored training for emergency rescue staff regarding the EV1, but it too was limited in scope.

Bigdog is absolutely correct about training and equipment for first responders being inadequate for the "all electric" utopia being promulgated by governments and some automakers. One of my neighbors who is with The City of Southaven Fire Department mentioned this concern to me not too long ago when I was chatting with him about the Chevy Spark EV my wife and I own.
 
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$54K doesn't get you the good EV's. A new Tesla Model S Plaid starts at $136K, a Ford Lightning Lariat with extended range starts at $77K, and the blue Chevy Silverado EV in all the commercials is $107K as shown.
Well, with the Silverado EV you will have a variant at 35k according a GM presentation earlier this year. The upcoming Equinox EV will start about $30k according to the same presentation. While the Lyriq starts at $63k, it’s a damned good value at that price.
 
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Electric limo would be easy to do right now, but not yet on Air Force One.
Hummer Platform should work. the new Beast. They could fit several Solar Panels on the roof!!!!
 

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I think Ford is in the cooker with prices because it’s holding so many orders for Lightning and Mach E, they can’t renegotiate a price that’s already been agreed to in writing (dealer markups are another story).

Ford suspended Mach E orders in April because the current year model is sold out to retail buyers (dealers may have some stock coming) so an opportunity to reset pricing once Orders recommence for MY23. Maybe finesse that a bit by simply by dropping the Select model and start with the higher spec $48k Premium trim that make more profit.
 

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EV can be really "good":


OR they can be really "cheap":


But not "good" AND "cheap".
There is something in-between

Why must an EV be a 9000lb Crab Walking Monster? or a Square Box for 2 + a Lunch Box?

A Smart 4-2 style commuter, at an affordable price, with 100 mile range and the ability to charge in 6 hours would suite most people's second (yes second) vehicle needs. This doesn't eliminate the need for ICE vehicles, but it could cut their need in half. While most homes can accommodate 1 vehicle getting charged overnight without much troubles.
 

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I think Ford is in the cooker with prices because it’s holding so many orders for Lightning and Mach E, they can’t renegotiate.
Even if they just break even, it helps them with CAFE and offsetting having to buy Carbon Credits. Obviously they'd rather make margin and help with Cafe, but Inflation's a Bit*h.
 
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