Electric Vehicle Prices Continue to Rise
» Posted August 12, 2022 Resources | Share This Post
As major automakers continue to shift their focus to electric vehicles, the cost of buying a plug-in car is going up.
The average new electric vehicle now comes with a price tag of $54,000, according to a report from the Wall Street Journal. That is up a whopping 22% from just a year earlier and $10,000 more than the average gas-powered car.
General Motors, for example, recently added more than $6,200 to the price for new GMC Hummer electric pickup trucks. Those vehicles are now going for anywhere from $85,000 to $105,000.
Tesla similarly has bumped up the price on new Model Y sport utility vehicles three separate times over the last year. The result is a 9% total increase in the price tag, which now starts at just under $70,000.
Carmakers claim that rising costs for parts and logistics are forcing their hands.
“The companies say they are trying to offset a recent price rise in raw materials that go into the batteries to power electric cars, by far the most expensive component of an EV,” Mike Colias reports for the Journal. “Prices for lithium, nickel and cobalt have roughly doubled since before the Covid-19 pandemic began.”
But they are also boosting prices on plug-in cars as skyrocketing fuel prices have more and more buyers looking to ditch gas-powered vehicles.
General Motors announced last year that it will ditch gas cars by 2035, an ambitious move that sent shockwaves through the auto industry. Volvo followed by pledging to hit the all-electric mark five years earlier. Ford has said that it plans to make electric cars 40% of its annual vehicle sales by 2030.
Electric vehicles still only account for about 5% of all car sales in the U.S. JD Power’s Tyson Jominy told the Journal that carmakers will have to make at least some electric vehicles more affordable if they want to attract more buyers.
“For mass consumer adoption, the industry still has to find a way to get cheaper EVs to market,” Jominy said.
How California's Lemon Law Protects Car Owners
While companies look to raise the prices on new electric cars, they are still having a hard time ensuring that the vehicles are safe to drive.
For example, GM recalled some 140,000 Chevy Bolt vehicles over fire issues last year. More recently, Toyota has told BZ4X electric SUV owners that the wheels on their cars may fall off unexpectedly.
Fortunately, car owners in California have some important rights and protections when it comes to defective and malfunctioning vehicles.
The state’s lemon law requires automakers to do a full range of repairs on vehicles while they are under warranty. The law also forces car manufacturers to buy back vehicles that they cannot or simply refuse to fix.
Talk with a California Lemon Law Attorney
If you have been stuck with a defective or malfunctioning vehicle, a California lemon law attorney at Bickel Sannipoli APC can help you fight back.
Call us at (888) 800-1983 or contact us online to speak with a California lemon law attorney.