Legacy carmakers are facing pressure to electrify their fleets and head off market share leader Tesla (TSLA) as it gains in popularity.
And the market seems ready for those electrified vehicles.
New data from Recurrent, a car industry analysis company, has found that the overall price of electric vehicles has skyrocketed 25% year-over-year.
The report also found that people who decide to sell their EVs have recouped almost all of their original purchase price.
“We have been tracking used EV prices for the past year as they increased month after month, always with the assumption that they would come back down,” Scott Case, CEO and co-founder of Recurrent, said in a statement.
“Based on soaring demand and limited supply, we should plan for these higher EV valuations to be the new normal,” he said.
The EV market was estimated to be worth $163.01 billion in 2020 and is projected to be worth $823.74 billion by 2030.
Chevy Corvette Takes Electrified Turn
General Motors (GM) announced that it will produce an electrified version of its iconic Chevrolet Corvette muscle car, followed by an all-electric version of the car.
The company did not say exactly when the new Corvette would be released, but did put out a teaser saying to watch for early next year.
GM President Mark Reuss told CNBC that the automaker will continue to produce traditional models with internal combustion engines alongside the electrified models.
“We will have an electrified Corvette next year, so it’s coming very quick," Reuss said. "This is in addition to all of the great performance that Chevrolet and Corvette have been known for, for many, many years with our internal combustion engines.”
There is evidence that America has a strong appetite for electric versions of classic muscle cars.
Joe Biden first leaked information about a possible electric Corvette last year when he said that the vehicle was in development.
"I've got a commitment from [GM CEO Mary Barra], when they make the first electric Corvette, I get to drive it," Biden said. "You think I'm kidding, I'm not kidding."
Ford's E-Mustang Is Showing What's Possible
"Due to high demand, the current model year is no longer available for retail order," according to a notice on Ford's Mach-e page. "Limited inventory may be available at selected dealers. Contact your dealer for more information."
Ford stopped taking orders for the Mach-E Premium and California Route 1 models last month.
Ford recently raised prices in the UK for the Mustang Mach-E due to increased material and energy costs. The vehicle is going for about $61,990, roughly $7,800 from the original launch price of $53,900.
The war in Ukraine has also sparked a shortage of certain raw materials.
The company, run by Chief Executive Jim Farley, has promised to build two million EVs annually by 2026.
Ford delivered fewer than 7,000 electric vehicles in the U.S. in the first quarter, mainly the Ford Mustang Mach-E SUV.
However, Farley tweeted about the start of production and deliveries of the long-awaited F-150 Lightning electric pickup on April 26.
The Mustang Mach-E is produced at a Ford Motor plant located in Cuautitlán, Mexico. Ford hopes to increase production there to 200,000 units a year by 2023.
The company also plans to produce other electric vehicles at the same factory, such as the electric versions of the Ford Explorer and the Lincoln Aviator.
The Mustang, which marked its 58th birthday on April 17, made its debut at the New York World's Fair in 1964 when it was unveiled by Henry Ford II.
