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 motor company said.
The Mustang Mach-E 2022 models were priced between 44,000 and $62,000, but the 2023 makes of the EV will cost as high as $70,000 with the cheapest option being $47,000. Earlier this month, Ford also increased prices on its electric pickup truck, the F-150 Lightning, for similar reasons, according to CNBC. Tesla, Rivian, Lucid, and GM have also raised prices on EVs this year.
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…