GM Says It Doesn't Need To Drop Prices Like Tesla And Ford

Electric Vehicles / 9 Comments

"Our customers are saying that our vehicles are priced well," the company says.

During a fourth quarter earnings call reported on by Business Insider, General Motors said it does not plan to cut prices on its electric vehicles following the drastic price drops from Tesla. Ford has already dropped prices of the Mustang Mach-E in retaliation, but German automaker Volkswagen will not join the price war. "Our customers are saying that our vehicles are priced well," said GM chief financial officer Paul Jacobson.

"When we look at our strong product portfolio and the interest that we have at the prices we've already announced, we feel that we're well positioned," echoed GM CEO Mary Barra.

2023 GMC Hummer Forward Vision CarBuzz
2023 GMC Hummer Rearward Vision CarBuzz

Let's take a look at Barra's claim and analyze it from an outsider's perspective. At the bottom end of the lineup, GM sells the Chevrolet Bolt, which is currently the cheapest EV available in the US at just $26,500. GM will also roll out the Cadillac Celestiq, a hand-built, flagship electric sedan that will cost over $300,000. That high price tag hasn't stopped the Celestiq from selling out for the next 18 months. Even in the middle of the company's massive EV portfolio, the Cadillac Lyriq seems well-priced at $62,990, though Tesla's recent price cuts and revived tax credit status make it a much stronger value.

While the Bolt sold pretty well with 38,120 units in 2022, the GMC Hummer was very low-volume with only 854 units. As for the Lyriq, it was even worse with 122 units sold due to supply constraints. GM will hope to increase EV production capability in 2023.

2024 Chevrolet Blazer EV Forward View CarBuzz

As for the company's upcoming EV models, they all seem fairly priced assuming GM doesn't have to raise MSRPs based on increased production costs. The Chevy Equinox EV is set to arrive with a sub-$30,000 price tag and the larger Blazer EV will cost $44,995.

On the truck side of the business, the Chevy Silverado EV will undercut the Ford F-150 Lightning with a $39,900 price tag, while the GMC Sierra EV will only be sold at first in the luxurious Denali Edition 1 trim for $108,695.

2022-2023 Chevrolet Bolt EUV Front Angle View CarBuzz
2022-2023 Chevrolet Bolt EUV Rear Angle View CarBuzz

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