Peach Tree Times

With inflation affecting the cost of basic necessities, most families in Georgia and across the nation cannot afford the price of an electric vehicle (EV), making high gas prices look a lot less painful comparatively. However, President Joe Biden is calling for a shift toward EVs as part of his administration's push for green energy. 

The shift to electric vehicles has been strongly encouraged by the Biden administration since August 2021. Biden set the goal of producing at least 50% of all vehicles emission-free by 2030 as part of his push for green energy, according to a White House press release. However, that goal may be delayed by current soaring levels of inflation affecting the ability of families to basic goods and services let alone the cost of a new EV.

Chris Teague, contributing automotive journalist for Autoblog, said in a release that EV costs have increased more than 20% since last year.

"In May, buyers paid an average of 22% more for a new EV than they did the year before, as the average sale amount climbed to $54,000," Teague wrote. 

Teague pointed out that prices for gas vehicles have been on the way up as well, though to a lesser extent. Buyers reportedly paid an average of $44,400 for a gas vehicle in the same period, a 14% increase. Raw material cost increases, research and development costs, rapid demand growth and inflation are said to be significant contributors to EVs becoming more expensive so quickly.

Tesla has increased the prices of its vehicles multiple times this year, so much so that some of Tesla's EVs cost almost 10% more than they did at the start of 2022, according to Teague.

According to CNBC, a report by AlixPartners said raw material costs for electric vehicles more than doubled during the coronavirus pandemic. These cost increases have forced General Motors, Tesla, Lucid and Rivian to significantly raise prices on new EVs.

Led by essential battery materials such as cobalt, nickel and lithium, average EV raw material costs totaled $8,255 per vehicle as of May. AlixPartners noted that this average cost is up 144% from $3,381 per vehicle in March 2020. It has also been reported that EV-specific costs have increased to $4,500 from roughly $2,000 in the past two years.

The average cost for gasoline today in Georgia is $4.14 per gallon, according to the AAA. There has recently been a slight decline in gas prices, largely driven by a decrease in the price of oil.

According to World Population Review, the median income in Georgia is $58,700, making the affordability of an average EV unrealistic.