GM and Ford Increase Electric Car Price What It Means for Buyers

GM and Ford have raised electric vehicle prices across key models, citing rising battery costs and supply chain pressures. This shift makes EVs slightly less affordable for buyers, potentially slowing adoption despite growing demand and federal incentives. The price hikes underscore the challenges automakers face in balancing profitability with the transition to sustainable transportation.

Key Takeaways

• Higher EV prices: GM and Ford raise costs, impacting affordability for budget-conscious buyers.
• Reevaluate incentives: Check federal/state tax credits to offset new pricing before purchasing.
• Compare competitors: Explore rival EVs like Tesla or Hyundai for better value options.
• Wait for deals: Monitor seasonal promotions or lease specials to save post-increase.
• Consider used EVs: Certified pre-owned models offer savings amid rising new car prices.
• Factor in TCO: Calculate long-term fuel/maintenance savings to justify higher upfront costs.

Why GM and Ford Are Raising Electric Car Prices

If you’ve been eyeing an electric vehicle (EV) from General Motors (GM) or Ford, you might have noticed something surprising: the price tags are going up. Just when it seemed like electric cars were becoming more affordable, both automakers recently announced price hikes across several of their EV models. For example, the 2024 Chevrolet Blazer EV saw a jump of over $6,000, while the Ford F-150 Lightning’s price increased by as much as $10,000 depending on the trim. These aren’t small adjustments—they’re significant shifts that are making headlines and leaving many buyers scratching their heads.

You might be wondering: Why now? After all, weren’t EVs supposed to get cheaper as technology improved and production scaled up? The truth is, the EV market is more complicated than it seems. While battery costs have dropped over the years, other factors—like supply chain disruptions, inflation, and rising material costs—are pushing automakers to adjust their pricing strategies. GM and Ford aren’t alone; other manufacturers like Tesla have also tweaked prices in recent months. But for buyers, especially first-time EV shoppers, these increases can feel like a gut punch. In this post, we’ll unpack what’s driving these price hikes, how they impact your wallet, and what you can do to navigate the changing landscape of electric car ownership.

What’s Behind the Price Increases?

The Role of Inflation and Supply Chain Challenges

Let’s start with the obvious: inflation. Everything from labor to transportation has gotten more expensive since the pandemic. For automakers, this means higher costs for everything from steel and aluminum to microchips and logistics. For instance, shipping a container from Asia to the U.S. cost around $1,500 pre-2020. By 2021, that price had ballooned to over $20,000. While it’s come down since, it’s still higher than historical averages, and that cost gets passed down to consumers.

Supply chain disruptions are another big factor. The global chip shortage, which started in 2020, is still affecting production timelines. While it’s improved, automakers are still playing catch-up. GM and Ford have had to slow or pause EV production at certain plants due to component shortages. When supply is constrained, manufacturers often prioritize higher-margin trims or add premium features to justify higher prices. It’s a balancing act between meeting demand and maintaining profitability.

Soaring Battery and Raw Material Costs

You might think EV batteries would be getting cheaper, right? Not so fast. While battery pack prices have fallen over the past decade, they’ve actually increased in recent years due to rising demand for critical materials like lithium, nickel, and cobalt. Lithium prices, for example, spiked by over 400% between 2021 and 2022. Even though they’ve cooled somewhat, they remain volatile and sensitive to geopolitical tensions (like the war in Ukraine) and mining regulations.

Ford’s CEO, Jim Farley, has publicly cited raw material costs as a key reason for the F-150 Lightning’s price hike. “We’re not immune to what’s happening in the global commodity markets,” he said in a recent earnings call. Similarly, GM’s leadership has pointed to battery costs as a factor in the Blazer EV’s higher price. These aren’t just minor adjustments—they reflect real, tangible cost pressures that automakers can’t simply absorb.

Strategic Pricing and Market Positioning

Here’s something less talked about: pricing strategy. Automakers don’t just set prices based on costs—they also consider market positioning and competition. GM and Ford are in a fierce battle to dominate the EV space, especially in the lucrative pickup and SUV segments. By increasing prices on certain trims, they’re not just covering costs—they’re also signaling that their EVs are premium products.

Take the Ford F-150 Lightning. The base model (Pro trim) is still relatively affordable, but higher trims like the Platinum and Lariat now start well above $80,000. This allows Ford to position the Lightning as a luxury pickup with advanced tech and features, competing with high-end ICE (internal combustion engine) trucks. Similarly, GM’s Blazer EV and Equinox EV are being marketed as stylish, tech-forward alternatives to Tesla and other rivals. Higher prices can actually help build brand perception—even if it stings for budget-conscious buyers.

How the Price Hikes Affect Different Types of Buyers

Budget-Conscious Shoppers: Feeling the Pinch

If you’re shopping for an EV to save money on fuel and maintenance, these price increases can be frustrating. Let’s say you were considering the Ford Mustang Mach-E, which started around $43,000 in 2023. With recent increases, the base model now starts closer to $47,000—nearly a 10% jump. That’s a significant chunk of change, especially if you’re stretching your budget to go electric.

The same goes for GM’s Equinox EV, which was initially touted as a $30,000 EV. That price point has been delayed, and early models are now closer to $40,000. For buyers relying on federal tax credits (up to $7,500), the math changes dramatically. A $40,000 car with a $7,500 credit feels like a $32,500 car—but if the price jumps to $45,000, the effective cost after the credit is $37,500. That’s a $5,000 difference just from the price hike, even with the credit.

Tip: If you’re on a tight budget, focus on base trims or older model years. Dealers often have leftover 2023 models at lower prices. You can also explore leasing, which sometimes includes manufacturer incentives that lower monthly payments.

Tech Enthusiasts and Early Adopters: Paying for the Hype

On the other hand, if you’re the type of buyer who wants the latest tech and doesn’t mind paying a premium, these price increases might not be a dealbreaker. Higher trims of the F-150 Lightning and Blazer EV now come with features like hands-free driving, premium audio systems, and advanced towing tech. For some, the added cost is worth it for the convenience and performance.

But here’s the catch: early adopters often face the steepest prices. When a new EV launches, automakers charge a premium for being first. Over time, prices usually stabilize or drop as production ramps up. For example, the Tesla Model 3 started around $50,000 in 2017 but now has a base price of $38,990 (before credits). If you can wait a year or two, you might save thousands—even if you miss out on the “first to market” bragging rights.

Fleet and Commercial Buyers: Scaling Up Costs

For businesses and fleet operators, these price hikes have a ripple effect. The F-150 Lightning Pro, a popular choice for contractors and delivery services, saw a significant price increase. This affects total cost of ownership (TCO) calculations, especially for companies buying multiple vehicles.

However, there’s a silver lining. The federal Commercial Clean Vehicle Credit offers up to $40,000 for qualifying EVs used in business. This can offset the higher sticker price, making EVs more competitive with diesel trucks. Pro tip: Work with a tax professional to ensure you’re maximizing all available credits and deductions.

Comparing GM and Ford’s Pricing Strategies

GM: From “Affordable” to “Premium” Positioning

GM has made a clear shift in its EV strategy. Initially, the company promised affordable EVs like the $30,000 Equinox EV and $25,000 (rumored) Chevrolet Bolt successor. But as of 2024, the Equinox EV starts at $34,995—and that’s before adding options. The Blazer EV, meanwhile, starts at $48,800, with higher trims pushing $60,000.

This reflects a broader trend: GM is moving away from budget EVs and toward premium, tech-laden models. The Ultium platform, GM’s EV architecture, is designed to be scalable, but it’s also expensive to produce. By focusing on higher-margin vehicles, GM can fund R&D for future affordable models—though those are likely years away.

Ford: Pickup Dominance with a Premium Twist

Ford’s strategy is more nuanced. The F-150 Lightning remains a key player in the pickup market, but pricing has shifted dramatically. The base Pro model (for commercial use) starts at $54,995, while the consumer-focused XLT starts at $62,995. The top-tier Platinum trim now exceeds $90,000—rivaling high-end ICE trucks like the Ram 1500 Limited.

Ford is also leveraging its Mustang Mach-E to compete in the SUV space. While prices have increased, the Mach-E still offers a range of trims (from $42,000 to $60,000), giving buyers more flexibility. Ford’s approach seems to be: “We’ll cover all segments, but we’re not afraid to charge more for premium features.”

Data Table: Price Comparison (2023 vs. 2024)

Model	2023 Starting Price	2024 Starting Price	Price Increase	Notes
Ford F-150 Lightning (Pro)	$49,995	$54,995	$5,000	Commercial-focused trim
Ford F-150 Lightning (XLT)	$59,974	$62,995	$3,021	Popular consumer trim
Chevrolet Blazer EV	$44,995 (est.)	$48,800	$3,805+	New model, limited availability
Chevrolet Equinox EV	$30,000 (promised)	$34,995	$4,995+	Base trim delayed
Ford Mustang Mach-E	$42,995	$46,995	$4,000	Higher trims up $6,000+

How to Navigate the Higher Prices as a Buyer

1. Time Your Purchase Wisely

Timing is everything. If you’re not in a rush, consider waiting for the 2025 models or even 2026. Automakers often adjust pricing after the first year of a new model. For example, the 2024 Blazer EV is in limited supply, which allows GM to charge more. By 2025, production should scale up, and prices may stabilize—or even drop slightly.

Another tip: Shop at the end of the year. Dealers are often more willing to negotiate on 2023 or 2024 models to clear inventory. You might score a discount, free upgrades, or lower financing rates.

2. Maximize Incentives and Tax Credits

The federal EV tax credit is still a game-changer—but only if the vehicle qualifies. As of 2024, the credit requires vehicles to be assembled in North America and meet battery component sourcing rules. Both GM and Ford EVs currently qualify, but that could change as battery supply chains evolve.

Don’t forget state and local incentives. For example, California offers up to $7,500 in rebates for low-income buyers, while states like Colorado and New York have their own programs. Use resources like the Alternative Fuels Data Center to find incentives in your area.

3. Consider Leasing or Certified Pre-Owned

Leasing an EV can be surprisingly affordable, especially with manufacturer incentives. Ford and GM often offer lease deals with low monthly payments and minimal upfront costs. Plus, you can upgrade to a new model every 2-3 years without worrying about resale value.

Certified pre-owned (CPO) EVs are another great option. A 2-year-old F-150 Lightning with 15,000 miles might cost $10,000 less than a new one, but still come with a warranty and peace of mind. CPO programs often include battery health checks and roadside assistance.

4. Negotiate Like a Pro

Don’t be afraid to negotiate—even on EVs. While demand is high, dealers still need to move inventory. Here’s how to approach it:

• Do your research: Know the invoice price (what the dealer pays) and current incentives. Websites like Edmunds and Kelley Blue Book are helpful.
• Ask for extras: Free charging credits, floor mats, or a longer warranty can add value without raising the price.
• Be ready to walk away: If the dealer won’t budge, there are other EVs out there. Polestar, Hyundai, and Kia offer competitive models at lower price points.

What the Future Holds for GM, Ford, and EV Pricing

Will Prices Keep Rising?

It’s unlikely. While short-term increases are driven by supply chain and material costs, long-term trends point to lower prices. Battery technology is improving, and new mining projects are coming online. GM’s Ultium Cells joint venture with LG Energy Solution aims to cut battery costs by 40% by 2025. Ford is investing in solid-state battery research, which could revolutionize EV affordability in the 2030s.

Competition from Tesla and New Entrants

Tesla remains a major force, and its aggressive pricing (like the $25,000 rumored “Model 2”) could force GM and Ford to respond. Meanwhile, Chinese automakers like BYD and NIO are expanding into North America, bringing lower-cost EVs to the market. Increased competition often leads to price pressure—good news for buyers.

The Bigger Picture: EVs Are Still a Smart Investment

Despite the price hikes, EVs offer long-term savings. Lower fuel costs, reduced maintenance, and tax incentives can offset the higher purchase price. A 2023 study by Consumer Reports found that EVs cost 60% less to maintain over their lifetime compared to ICE vehicles. Even with higher upfront costs, the total cost of ownership is often lower.

Plus, as charging infrastructure improves and battery ranges increase, EVs are becoming more practical for everyday use. The F-150 Lightning’s 300+ miles of range or the Blazer EV’s fast-charging capability make them viable for most drivers—even if they’re a bit pricier than expected.

Final Thoughts: What It All Means for You

The price increases from GM and Ford aren’t just about covering costs—they’re a reflection of a maturing EV market. Automakers are balancing affordability with profitability, innovation with supply constraints, and competition with brand identity. For buyers, this means the era of “cheap” EVs might be on pause, but the long-term outlook is still bright.

Your best move? Stay informed, shop smart, and focus on the total cost of ownership—not just the sticker price. Whether you’re a first-time EV buyer or upgrading from an older model, there are still great options out there. And who knows? By the time you’re ready to buy, the next wave of affordable, high-range EVs might be just around the corner.

Remember: The EV revolution isn’t slowing down. It’s just getting more expensive—for now. But with a little patience and planning, you can still get behind the wheel of an electric car that fits your budget and lifestyle.

Frequently Asked Questions

Why have GM and Ford increased electric car prices recently?

GM and Ford have raised electric car prices due to rising battery material costs, supply chain challenges, and increased demand. These factors have driven up production expenses, forcing automakers to adjust pricing to maintain profitability.

How do the latest GM and Ford electric car price hikes compare to competitors?

GM and Ford electric car price increases are in line with industry trends, as rivals like Tesla and Rivian have also raised prices. However, Ford’s adjustments on models like the F-150 Lightning are slightly steeper, reflecting higher battery and logistics costs.

Will the price increases affect federal tax credits for GM and Ford electric cars?

Yes, price hikes could impact eligibility for the $7,500 federal tax credit, which caps at $80,000 for trucks/SUVs. Buyers should verify if their selected GM or Ford electric car still qualifies after the GM and Ford electric car price adjustments.

Are GM and Ford offering any incentives to offset the higher electric car prices?

Both automakers are providing limited-time incentives like low APR financing, lease deals, or free charging credits. Check local dealerships for region-specific promotions to help reduce the impact of the recent GM and Ford electric car price increases.

Which GM and Ford electric models saw the biggest price jumps?

The Ford F-150 Lightning and GM’s Cadillac Lyriq saw the most significant hikes, with some trims rising by $5,000–$8,000. Smaller increases were applied to the Chevrolet Blazer EV and Ford Mustang Mach-E.

Should I buy now or wait for prices to stabilize?

If you need a vehicle immediately, buying now with available incentives may be wise. However, waiting could pay off if material costs drop or new tax credit rules take effect later this year.