Overconfident? Companies Raise Prices of Electric Vehicles More than New Federal EV Taxpayer Subsidy

By B.N. Frank

Research has determined that many Americans still aren’t interested in investing in Electric Vehicles (EVs). Who can blame them? EVs have been associated with high costs, fires (see 1, 2, 3, 4, 5, 6, 7, 8, 9), and other considerable issues. Fire issues actually led to a U.S. investigation and numerous recalls. Despite all of the above, it’s possible that the recently passed $7,500 EV taxpayer subsidy may persuade more Americans to take a chance on an EV. Of course, the companies’ practice of raising their EV prices significantly more than the subsidy itself may backfire.

From Zero Hedge:

Ford Hikes Price Of EV F-150 Up To $8,500, More Than Biden’s “Inflation Reduction” Subsidy

By Tyler Durden

Today in both “price fixing is useless” and “your taxpayer dollars at work” news…

In a move that can only be described as conspicuously timed, Ford announced last week that it is raising the price of its high-end electric F-150 by up to $8,500; an amount that adds another $1,000 onto the new $7,500 EV subsidy that was including in President Biden’s “Inflation Reduction Act”. Base models are seeing their prices hiked by $7,000.

Biden signed his “flagship” act on Tuesday afternoon.

One more time, so we’re clear: a $7,500 taxpayer subsidy included in an act named after reducing inflation appears to have spurred an even larger price hike on electric pickup trucks.

The electric F-150 had previously been listed for $40,000 for its base version. Now, it is priced at $47,000, according to CNN. The better-equipped versions of the vehicles have similar price hikes, up to $8,500.

Rather than come right out and state what appears to be the obvious, Ford said that the price change is due to “significant material cost increases and other factors.”

Other factors like…oh, say, a $7,500 taxpayer-subsidized cash grab?

The automaker has made some “small improvements” to the vehicle, however, according to the report. For example, the range for the base model of the vehicle has moved higher to 240 miles from 230 miles. The company is also adding a new feature called “Pro Trailer Hitch Assist”, which reportedly helps hook up the truck to trailers.

Sounds like $7,500 worth of improvements if you ask us…

And, as the report notes, Ford isn’t the only automaker raising prices. GM has also increased the price of its electric Hummer by $6,250 – a similarly conspicuous amount.

Other EV-related warnings include that EV mandates actually threaten the U.S. grid and will increase the need for fossil fuels. U.S. grid operators have also warned of the potential for blackouts if the switch to renewable energy isn’t slowed down. Problems with EV charging stations have been reported too (see 1, 2). Experts continue to warn about health and environmental risks associated with EVs as well (see 1, 2, 3, 4, 5). Got pets? Radiation exposure from EVs and other common sources can affect them too.

Nevertheless, many U.S. legislators and government agencies continue to support a hasty widespread adoption of both electric cars and trucks, hence the $7,500 tax subsidy.