EV prices soar, as one exec warns of market “collapse” if they don’t get cheaper

EV prices are soaring at a non-sustainable rate, one auto-industry executive warns.

As noted by Autoblog, several automakers have raised prices on their electric models in recent months. Tesla has raised prices multiple times this year, and the GMC Hummer EV got a $6,250 price bump last week. Ford and Rivian have raised prices recently as well.

Multiple factors contribute to the price increases, Autoblog noted. Rising materials costs have eaten away at profit margins, and automakers are also looking to recoup research and development costs in newly-launched EVs. Demand for EVs has also remained high, and continues to be stoked by high gas prices. With customers lining up, it’s unlikely that automakers would lower prices under any circumstances.

2022 GMC Hummer EV pre-production at Factory Zero plant in Detroit, Michigan2022 GMC Hummer EV pre-production at Factory Zero plant in Detroit, Michigan

While this remains a terrible time to buy a new car, automakers are feeling the pressure too, Stellantis chief manufacturing officer Arnaud Deboeuf said in a recent interview with Bloomberg.

If EVs don’t get cheaper, “the market will collapse,” Deboeuf said, adding that Stellantis is aiming to cut EV manufacturing costs by 40%. Stellantis plans to introduce 75 all-electric models globally this decade, including a Ram pickup truck, Dodge muscle car, and at least one Jeep SUV for the United States market.

The European Union is also pushing to eliminate sales of new internal-combustion vehicles by 2035, and Stellantis CEO Carlos Tavares has expressed doubt about whether local battery manufacturing can ramp up quickly enough. Initially, automakers may need to source more batteries from Asia before new European and North American battery plants come online, Tavares told Bloomberg during a factory visit in Metz in northeastern France.

DS 4 E-TenseDS 4 E-Tense

Tavares last year noted that the additional cost of EVs was beyond what the industry could sustain, claiming they cost Stellantis 50% more to manufacture than current gasoline or diesel vehicles.

While high prices have even affected used EVs, there are some bright spots. The 2023 Chevrolet Bolt EV gets a $6,000 price cut for the new model year, reducing its base price to $26,595 with destination charges—even with some retroactive discounts so as not to leave anyone out. And GM has said the 2024 Chevrolet Equinox EV will start around $30,000 when it arrives next year.

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