Material costs are responsible for price jumps.
Some automakers are holding off, but many have already passed the higher costs to their customers.
The situation isn’t exactly dire, but consumers are stuck between record-high fuel prices and next to no EV alternatives as waiting lists grow by the day. Already, those shopping for an EV have possibly noticed upward price fluctuations and unfortunately, this trend is not about to end.
A combination of factors ranging from massively increased demand to the war in Ukraine has put further strain on various supply lines. Battery-related raw materials and transportation have pushed battery cell prices up. The same applies to semiconductors to sheet metal and to seats.
Tesla, Rivian, Lucid, and others have or will shortly increase boost their prices to reflect the increased cost of building the vehicles. Legacy automakers like GM’s Cadillac division have a certain advantage with their economies of scale, but they are not immune. Cadillac will bump the Lyriq’s pricing by $3,000 for all new orders.
Cadillac President Rory Harvey said, as reported by CNBC: “I don’t think it was one thing in isolation,” Harvey said during a media briefing Monday. “I think it was a number of factors taken into account.”