U.S. customers had to pay 22% more last month to buy electric cars amid growing demand and supply woes for EV makers, The Wall Street Journal reported on Sunday.
What Happened: Average EV prices grew 22% year-on-year in May at about $54,000. In comparison, prices for Gas-powered vehicles rose 14% to about $44,400, according to automotive research consultancy J.D. Power.
Tesla Inc TSLA, Ford Motors Co F, General Motors Co GM, Lucid Group Inc LCID and Rivian Automotive Inc RIVN are automakers that have bumped up prices on certain EVs in the recent past, partly to offset surging costs of lithium, nickel, cobalt and other battery-making materials.
Price Hikes Continue: GM bumped up the price of GMC Hummer electric pickup-truck models by $6,250 last week, citing an increase in commodity and logistics costs. The trucks, which have a waiting period of about two years, are now priced between $85,000 to $105,000.
However, GM also recently lowered the price of its Chevrolet Bolt by $6,000 to about $27,000.
EV market leader Tesla hiked prices in May multiple times and took another round of increases a week ago. The Elon Musk-led company raised its U.S. car prices by $6,000 across various models.
Musk had earlier this year warned the company was facing extensive raw material and logistics costs.
Ford CFO John Lawler said last week that rising commodity costs had erased the profit the automaker initially expected to make on its electric Mustang Mach-E. The company has raised prices to offset higher input costs, but Lawler said they were not enough to maintain margins.