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Electric vehicle prices rise at Tesla, Rivian, GM and other carmakers


Tesla Model 3 at Tesla Store in Washington, D.C.

The Washington Post | The Washington Post | Getty Images

Automobile manufacturers from TeslaYou can find more information here RivianCadillac is increasing the price of their electric cars due to changing market conditions, rising commodity prices and increased costs for certain materials for EV batteries.

The battery price has been falling for years. But, that could soon change. According to one firm, there will be a significant increase in the demand for lithium-ion batteries minerals over the next four year that may push up the cost of EV batteries. up by more than 20%. It’s the best! already-rising pricesSupply-chain disruptions caused by Russia’s invasion in Ukraine and Covid have led to shortages of battery-related materials.

The increased costs of electric vehicles have led to some manufacturers raising their prices. It makes the cars less affordable for the average American.

Paying for the passing costs

Industry leaders Teslaa long-standing effort to reduce the cost of its vehicles. “secret master plan”in order to encourage a shift towards zero emission transportation. However, even this has required it to raise its price several times during the last year. twice in MarchElon Musk, CEO of SpaceX, warned that Tesla and SpaceX are “under significant inflation pressure” due to rising transportation and raw material prices.

Many Teslas now cost significantly more than at the start of 2021. Tesla’s most economical vehicle is the Model 3 Standard Range. It costs $46,990, 23% more than $38,190 in February 2020.

RivianAlthough it was an early adopter in price rises, its decision wasn’t without controversy. On March 1, the company announced that its two consumer models, R1T pickup truck and R1S SUV would see steep price hikes, starting immediately. It stated that the price of R1T will increase 18% to $79500 and R1S by 21% to $84,500.

Rivian also announced lower-cost models of the two models with less standard features and 2 electric motors rather than 4. They are priced at $67500 and $72,500, which is close to their original four-motor sibling.  

There were some eyebrows raised by the adjustments. Rivian stated at first that prices would rise for orders received before March 1. This meant that existing reservations holders will be refunded more. After two days of backlash, RJ Scaringe, the CEO, apologized for his mistake and stated that Rivian would. honor the old pricesFor orders already placed.

Scaringe sent a letter to Rivian stakeholders, stating that he had spoken with many of them over the past two days and fully understood how many were upset. A lot has happened since we first established our pricing structure. This is especially true in the last few months. Everything, including semiconductors and sheet metal as well as seats, has become increasingly expensive.”

Lucid GroupSome of these higher prices are also passed on to wealthy buyers of luxury sedans.

According to the company, it stated on May 5th that it would raise the prices of all but one versionAir Luxury sedans will be discounted by 10% to 12% for U.S. Customers who make reservations after June 1st. Lucid CEO Peter Rawlinson stated that Lucid will honour its current rates for all reservations received after Rivian made a change.

Customers making reservations for a Lucid Air on June 1 or later will pay $154,000 for the Grand Touring version, up from $139,000; $107,400 for an Air in Touring trim, up from $95,000; or $87,400 for the least expensive version, called Air Pure, up from $77,400.

Price for a New Product top-level trim announced in April, the Air Grand Touring Performance, is unchanged at $179,000, but — despite similar specs — it’s $10,000 more than the limited-run Air Dream Edition it replaced.

Rawlinson said that “the world has changed dramatically since we first announced Lucid Air back September 2020,” during Rawlinson’s earnings call.

Legacy advantages

Global automakers with established brands have higher economies of scale and are not as affected by the rising cost of batteries. Although they are also feeling pricing pressure, buyers will be affected less.

General MotorsOn Monday, Cadillac Lyriq raised its starting price for the Cadillac Lyriq hybrid EV. This bumped new orders up by $3,000 to $62,990. This does not include sales of the initial debut version.

Cadillac President Rory Harvey, in explaining the hike, noted the company is now including a $1,500 offer for owners to install at-home chargers (though customers of the lower-priced debut version will also be offered the deal). He explained that the company is now offering a $1,500 offer to owners for at-home chargers (though customers of the lower-priced debut version will also be eligible). Competitive pricing and conditions outside the market were factors that contributed to raising the price.

GM warned at its first-quarter earnings callIt said last month it expected overall commodity costs to reach $5 billion in 2022, double the previous forecast.

Harvey, announcing price changes Monday at a press briefing said “I don’t believe it was one thing alone.” He added that company officials had planned to alter the price tag immediately after the event. It was an amalgamation of many factors.

He stated that the performance and specs of the 2023 Lyriq have not changed from the original model. However, the Lyriq’s price hike is closer to the Tesla Model Y’s.

Rival Ford MotorFord has made pricing an integral part of the F-150 Lightning’s sales pitch. Ford’s announcement last year that the F-150 Lightning will start at only $39,974 surprised many analysts.

Darren Palmer, Ford vice president of global EV programs, said the company plans to maintain the pricing — as it has so far — but that it’s subject to “insane” commodity costs, like everyone else.

Ford stated last month that it anticipates achieving $4 billion in raw material headwindsThis year’s forecast is up from $1.5 billion to 2 billion.

Palmer said that while the company will continue to keep the money for all, they would have to adjust to commodities.

The Lightning is likely to see an increase in price, but the existing reservations holders of 200,000 are unlikely to be affected. Palmer claimed Ford had taken note of Rivian’s resistance.

Established supply chains

The Lyriq and the F-150 Lightning are new products, with new supply chains that – for the moment – have exposed the automakers to rising commodity prices. However, older electric cars like the Chevrolet Bolt are still in demand. NissanLeaf has allowed automakers to remain modest in their price rises despite rising costs.

The price of the 2022 Bolt EV from GM is $31,500. This represents a $500 increase over the earlier model years, however, it’s still about $5,000 less than the prior model year. It also comes in roughly $6,000 below the cost when the car was introduced for 2017. GM is yet to release pricing information for the 2023 Bolt EV.

Nissan announced last month that an updated version its electric Leaf which was on sale in America since 2010 would continue to be available at the same starting price for 2023. Current models are priced at between $27,400 to $35,400.

Jeremie Ppin, Nissan Americas chairman said that pricing is a priority for the company. He stated that it tries to absorb all external price hikes as well as future vehicle like its upcoming Ariya EV. It will cost $45,950 to purchase the 2023 Ariya when it is available in the U.S. this year.

Papin stated to CNBC that “that’s always been the first priority.” “That’s what we’re focused on doing … it’s true for ICE as it is for EVs. “We just want cars to be sold at an affordable price, and their entire value.”