Americans shopping for new electric vehicles at dealerships due to the increase in gasoline prices may experience sticker shock.
Along with gas prices, EV prices have surged from a year ago, according to new research from data and analytics firm J.D. Power, cited by The Wall Street Journal.
The average sticker price for an EV in the United States in May was up 22% from a year ago, to about $54,000, according to J.D. Power. The average price for an internal-combustion vehicle rose 14% over the same period, to about $44,400.
Automakers have increased the price to capitalize on new interest fueled by surging gas prices and offset the soaring cost of raw materials like nickel, cobalt and lithium for their large batteries due to supply chain issues, according to the WSJ.
The average cost of the raw materials for EVs has more than doubled to $8,255 per vehicle, up from $3,381 per vehicle, since the COVID-19 pandemic began, according to a report from CNBC, citing data from consulting firm AlixPartners.
The surge in raw material cost has been exacerbated by the war in Ukraine because Russia is a key exporter of several metals used in battery cells.
The current national average cost of regular gas is about $4.90, according to the American Automobile Association, down from about $4.98 a week ago, but still up from about $3.10 a year ago.
Online searchers for EVs have increase 73% since January, the WSJ previously reported, citing data from auto shopping websites Kelley Blue Book and Autotrader.
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