For those of you who believe that the electric vehicle ‘revolution’ is a boon for our planet and our economy, you probably should rethink that.
In the wake of Democratic legislation providing thousands of dollars to Americans as an incentive to purchase an already expensive EV, the automakers are essentially raising the prices of their vehicles by approximately the same amount — because that’s what happens when the government hands out ‘free’ money (just look at what happened to college tuition when Obama basically nationalized school loans).
That includes Ford Motor Co., which just announced a substantial increase in the price of its EV Mustang model, the Mach E.
The Daily Wire notes:
Buyers will face the higher price tag on the electric vehicle (EV) when order banks for the 2023 model reopen on Tuesday, CNBC reported. The increase comes just weeks after President Joe Biden signed the Democrats’ Inflation Reduction Act, a massive climate spending bill that handed out tax credits to Americans willing to purchase certain EVs.
“Ford is adjusting the MSRP on the Mustang Mach-E due to significant material cost increases, continued strain on key supply chains, and rapidly evolving market conditions, and will continue to monitor pricing across the model year,” the Michigan-based vehicle manufacturer said.
Before the increase, Mustang Mach-E models for the 2022 year cost between $44,000 and $62,000. However, the 2023 models of the EV climbed to as much as $70,000 while the cheapest model rose to $47,000.
This increase comes on the heels of a previous announcement by Ford that it was raising the price on its F-150 Lightning EV pickup truck for the same reasons, according to CNBC, which added that other vehicle makers including Tesla, Rivian, Lucid, and GM also raised prices on their electric offerings.
And by the way, the big winner here is China, of course:
Car manufacturers are increasing EV prices after electric battery costs skyrocketed during the COVID pandemic. Materials such as cobalt, lithium, and nickel have become harder to get, with China dominating cobalt and lithium production. That, coupled with supply chain issues, resulted in the cost of raw materials for EV production doubling from March 2020 to May 2022.
Biden affixed his signature to the Inflation Reduction Act last week with full support of all Democrats and the two Independents who caucus with them; all 50 Republicans opposed the bill. In addition to nearly $370 billion for new ‘climate’ spending, the law also provides tax credits of up to $7,500 for Americans who buy certain EV models that are made in North America.
“American auto companies, along with American labor, are committing their treasure and their talent — billions of dollars in investment — to make electric vehicles and battery and electric charging stations all across America, made in America,” the president said when signing the measure.
By the way, according to the Department of Energy, the 2022 Ford Mach-E qualifies for Biden’s tax credit, but the 2023 model, however, was not on the department’s list of qualifying vehicles.