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New Energy Vehicle Brands Raise Price with Oil Price Increasing

    The new round of oil price adjustment was announced on March 17. The price is expected to experience seven consecutive rises. Rising oil prices have exacerbated the travel costs of car owners. There are many turning to the electric cars but more and more electric vehicle manufacturers have increased the price as well.

Elon Musk of Tesla pointed to the high inflationary pressure

    Recently, Elon Musk, CEO of Tesla, said that Tesla and SpaceX are facing huge inflationary pressure.

    On March 15, the reporter of the International Finance News found through Tesla China's official website that the prices of Model 3 High-Performance and Model Y Long-Range and High-Performance increased by 18,000-20,000 yuan. The price of Model 3 High-Performance has been adjusted to 367,900 yuan on March 10; The prices of Model Y Long-Range and High-Performance are currently 375,900 yuan and 417,900 yuan respectively.

    Inflationary pressures, especially those of raw materials such as nickel, may delay the launch of the new strategy of electric vehicle companies. Although many automobile manufacturers, including Tesla, Rivian and Ford, have promised to potentially use nickel based battery packs. However, the price of nickel on the London Metal Exchange has soared to $100000 per metric ton, freezing transactions.

    At that time, the market believed that its price adjustment was inseparable from the recent rise in the price of raw materials for chips and batteries, coupled with the epidemic problem, which led to an increase in Tesla's car manufacturing cost.

    Musk pointed out that Tesla is not the only car company under inflationary pressure, which also means that the price of new energy vehicles may increase and change by different ranges in the future.

    Subsequently, BYD Automobile released the price adjustment instructions of some models on social media on March 15, indicating that due to the continuous sharp rise in the price of raw materials, BYD Automobile will adjust the official guidance price of new energy models related to dynasty.com and ocean.com, with an upward adjustment ranging from 3000 yuan to 6000 yuan, and explained that the price adjustment will take effect from 0:00 on March 16, Before that, the customers who pay the deposit to sign the contract will not be affected by the price adjustment.

    At present, there are two kinds of batteries valued by most new energy vehicle enterprises, namely ternary lithium battery and lithium iron phosphate battery. It is understood that different configurations of Tesla use different batteries. The standard version of Tesla uses the lithium iron phosphate battery while the high configuration version of Tesla uses the ternary lithium battery provided by LG. Both batteries have been affected by the rising prices of raw materials nickel and cobalt in the market, but the high configuration version of Tesla has been more affected.  

BYD followed up to increase its prices

    On the evening of March 15, BYD released the price adjustment and announced that the official guidance price of new energy vehicles would be increased by 3000 to 6000 yuan, which is the second time BYD has announced the price increase since 2022. On January 21 this year, BYD announced that the price of new energy vehicles increased by 1000 to 7000 yuan. The price adjustment will take effect from February 1.

    On March 17, Nezha Automobile released the information of model price adjustment, and the prices of some models were increased by 3000 to 5000 yuan. On March 18, Geely's Geometry Automobile also announced that the prices of some of its products would be increased by 3000 to 7000 yuan. Xiaopeng Automobile, Weltmester Automobile and Leapmotor Automobile also joined the camp of the price increase army. On March 18, Xiaopeng Automobile released the explanation of model price adjustment. The price of the company's products will be increased from 10,100 yuan to 20,000 yuan before subsidies, and the price adjustment will take effect from 0:00 on March 21. On March 19, Weltmester Automobile announced that the price of its products would be increased by 7000 to 26000 yuan, and the effective date of the price was on March 28.

    Recently, the continuous surge in the price of oil has made many people interested in buying new energy models. However, due to the rise in the price of battery raw materials, nearly 20 new energy vehicle enterprises have announced to raise the price.

    On the evening of March 19, Li Xiang, CEO of Lixiang Automobile said through social media that the increase in battery costs in the second quarter was very unreasonable. At present, the brands that have contracted with battery manufacturers to determine the price increase range of batteries in the second quarter have basically announced the price increase immediately. Most of the brands that have not yet increased their prices have not yet been negotiated, and they will generally increase their prices immediately after negotiation.

The collective price adjustment of new energy vehicles is mainly due to the sharp rise in the prices of core raw materials such as lithium and nickel. Taking the lithium required for the power battery of new energy vehicles as an example, the price of lithium has increased tenfold in more than a year from 50000 yuan per ton at the beginning of 2021 to 500000 yuan per ton at present. On March 18, the price of domestic lithium carbonate was reported at 504000 yuan per ton, an increase of 73.8% over the beginning of the year and 479.3% year-on-year.