This coming week, the total price of the new Mustang Mech-E from Ford is slated to see an almost $9,000 increase due to what the company claims is “evolving market conditions” and “significant material cost increases.”
Buyers will have to deal with the new, much higher, price tag for this premier electric vehicle (EV) when the ordering process for the 2023 model opens back on this coming Tuesday, as reported by CNBC. This particular increase takes place just a scant few weeks after Democrat President Joe Biden autographed the Democrats’ Inflation Reduction Act, an overly bloated climate spending bill that has issued several tax credits to any Americans willing to take the plunge and buy a highlighted selection of electric cars.
“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,” explained the Michigan-based automobile company.
The previous 2022 models of the Mustang Mach-E were originally priced between $44,000 and $62,000, but as recently unveiled the new 2023 models of the electric car are slated to cost as much as $70,000 with the bare bones baseline model sitting at a whopping $47,000. Earlier this month, Ford also chose to raise the price of its new electric pickup truck, the F-150 lightning, for what it claims are similar reasons, as reported by CNBC. Reportedly, Tesla, Rivian, Lucid, and GM have also taken this chance to spike the prices on their various electric vehicles for the 2023 lines.
Most car manufacturers have chosen to spike the prices of their electric vehicles in response to the cost of electric batteries going up throughout the duration of the COVID pandemic. Materials that are used in their creation, such as lithium, cobalt, and nickel have started to become harder to get ahold of, with China attempting to dominate both lithium and cobalt production. This, along with issues surrounding the supply chain, has resulted in the overall cost of the raw materials for electric car production almost doubling from March 2020 to May 2022.
Biden signed the recent Inflation Reduction Act on the 16th of August, which had the full Democratic support of the Senate, as every single Republican opposed it. Along with the recent bill’s almost $370 billion shelled out on climate, the legislation also grants tax credits to the tune of up to $7,500 for those who buy certain electric vehicles that are domestically built.
“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,” stated Old Uncle Joe at the time of the bill’s signing.
As reported by the Department of Energy, the 2022 Ford Mach-E also qualifies for the Democrat tax credit. the 2023 model, oddly enough, does not seem to be on the list of qualified models.