EV Tax Credit results: Starting next week, Ford’s Mustang Mach-E will see up to an $8,475 increase due to “significant material cost increases” and “evolving market conditions”

The price of Ford’s Mustang Mach-E would experience a hike of up to $8,475 the next week as a result of “substantial material cost increases” and “changing market conditions,” according to the firm.

According to CNBC, when order banks for the 2023 model reopen on Tuesday, prospective purchasers of electric vehicles (EVs) may find themselves confronted with a higher price tag. The rise comes only a few weeks after President Joe Biden signed the Democrats’ Inflation Reduction Act, which was a big climate spending plan that paid out tax incentives to those in the United States who were willing to purchase particular electric vehicles.

“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 had prices ranging from 44,000 to $62,000, while the 2023 makes of the electric vehicle will have prices ranging from $47,000 to as high as $70,000, with the cheapest choice being $47,000. According to CNBC, Ford also raised the pricing of their electric pickup trucks, the F-150 Lightning, earlier this month for the same reasons. This year, electric vehicle costs have increased across the board, including at Tesla, Rivian, Lucid, and GM.

Due to the sharp rise in the cost of producing electric batteries during the COVID epidemic, automobile manufacturers are raising the pricing of electric vehicles (EVs). Materials that were formerly readily available but are now more difficult to obtain include cobalt, lithium, and nickel. China is the world’s leading producer of cobalt and lithium. Because of this, as well as problems with the supply chain, the price of the raw materials used in the manufacture of electric vehicles more than doubled between March 2020 and May 2022.

On August 16, Vice President Joe Biden signed the Inflation Reduction Act, which had unanimous support from Senate Democrats but was rejected by every single Republican. In addition to spending approximately $370 billion on climate change mitigation and adaptation, the Act also provides tax credits of up to $7,500 for individuals who purchase specified electric vehicles (EVs) that are produced in North America.

“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,” the president said at the bill’s signing.

The Department of Energy has said that the 2022 Ford Mach-E is eligible for the tax credit that was proposed by Biden. However, the 2023 model was not included on the department’s list of EVs that were considered to be eligible.

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