Today, prices for new cars are particularly high. And to be fair, it’s not really yesterday, whereas this trend already started at least two years ago, at the end of the Covid-19 crisis. Indeed, due to the shortage of semiconductors, supply delays have led to higher prices, although demand has also been very strong despite falling sales. But not all models are really in the same boat, and some are likely to change their prices regularly. This especially applies to electric cars, which suffer much more from this phenomenon.

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— VINCI Autoroutes (@VINCIAutoroutes) July 11, 2022

High cost

If these vehicles always cost more than their thermal equivalents, their price also tends to fluctuate much more than these And in most cases, they very often change in the direction of increase. This is especially true now, even if Tesla is bucking the trend. But then what is the reason? It’s actually quite simple. And this is explained by the increase in the price of raw materials. Because in addition to the classic materials that are in all cars, electric cars are also needed lithium, cobalt, nickel or even manganese.

An important place

And these materials represent from 60 to 80% of the total cost of the car. However, they cost more and more as demand increases. Therefore, manufacturers must increase the prices of their vehicles to remain profitable. Tesla still found a way to lower prices, as it has with all models in its lineup, including the Model S and Model X a few days ago. Note that the war in Ukraine also affects this price increase.