Automakers jack up prices of electric vehicles, says price for raw materials became more costly

Amid increasing prices of materials for EV batteries, many companies express plans to jack up electric vehicle prices.

Companies such as Rivian, Tesla, and Cadillac, among others, all have announced an increase in product prices due to current market conditions. Battery prices have steadily declined over the years, but indicators show that this will not continue in the following months.

The global supply chain of the battery market has been adversely affected by the war between Russia and Ukraine. A trusted firm has projected that a ‘sharp increase’ of the prices is bound to happen — about 20%.

Coupled with a price increase, electronic vehicles have become more expensive than before — making it harder for the average American to acquire.

Tesla, the company that is known for its innovative electric cars, has had to increase prices twice this year already because of recent inflation issues. They’re one of few companies that initiated the campaign on producing zero-emission vehicles available to the public.

Teslas are more expensive than they were last year due to the recent volatility in markets. The price of their cheapest vehicle jumped 23%, from $38,190 to $46,990.

The auto company Rivia has also begun increasing prices on their products in early March. They announced an 18% rise in the price of their R1T model, now valued at $79,500, while the R1S is 21 percent more expensive than before – selling off at $84,500.

The company simultaneously announced a lesser offer for their electric motors to compensate for the hikes of 4-wheeled counterparts.

The CEO of Rivian RJ Scaringe said to stakeholders after reactions surfaced following the announcement. “In speaking with many of you over the last two days, I fully realize and acknowledge how upset many of you felt.”

He further explained, “Since originally setting our pricing structure, and most especially in recent months, a lot has changed. Everything from semiconductors to sheet metal to seats has become more expensive.”

The Lucid Group is increasing prices for all of its sedans. The company announced that they would be applying a 10-12% price hike on top model Air Luxury cars, with the exception of one.

Lucid CEO Peter Rawlinson told customers that the company would honor the rates of the reservations and orders made before the announcement. “The world has changed dramatically from the time we first announced Lucid Air back in September 2020,” Rawlinson said in a conference call.

General Motors is also raising the price of some of its vehicles, including the Cadillac Lyriq crossover EV. The model now costs $3,000 more than before, at $62,990.

Meanwhile, Ford Motor’s F-150 Lightning has surprised competitors with lower prices – its market launch came in at just under $40k.

Ford management said they would like to keep prices stable even as raw material costs increase.

“We’re going to still keep it for everybody, but we’ll have to react on commodities, I’m sure,” said Darren Palmer, Ford’s Vice President of global EV programs.