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Tesla, GM, Ford EV Price Hikes Loftier Than For Gas Cars: Here's The Average Price Gap

3K views 27 replies 14 participants last post by  Neanderthal 
#1 ·
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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#4 ·
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.
 
#7 ·
+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.
 
#5 ·
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.
 
#9 ·
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?"
 
#12 ·
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!
 
#18 · (Edited)
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.
 
#20 ·
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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