In 2022, we’re used to seeing the cost of vehicles rise higher and higher. However, Chevy just dropped the Bolt EV price, despite rising costs. Producing vehicles is more challenging and more expensive than ever. That’s true for nearly every automaker who have all struggled to keep up with demand for a few years now. Chevy is no different but still reduced the price of the new Bolt EV, making it the cheapest electric vehicle in the U.S.

Chevy drops Bolt EV price

According to CNBC, General Motors announced on Wednesday that it slashed the 2023 Chevy Bolt EV price. As a result, it will likely be the least expensive electric vehicle available in the US for the next model year. Furthermore, Chevy cut the Bolt EV price by $5,900, so it starts at $26,595. Additionally, the larger Bolt EUV had its price reduced by $6,300 down to a $28,195 starting price. Both prices include the mandatory $995 destination fee.

Any price reduction is rare nowadays, but especially for electric vehicle makers. With rising commodity costs and market changes, prices for everything are up. Essential materials required to manufacture EV batteries are more expensive than ever. Many brands, especially pure EV makers like Telsa, are raising prices. However, Chevy is going in the opposite direction.

EV companies are raising their prices

Price hikes are present for most automakers, but especially electric-exclusive companies. Tesla, Rivian, and Lucid have all had to raise prices recently. In addition, GM’s other brand, Cadillac, raised its EV prices for the same reasons. GM warned during its first-quarter earnings call that overall commodity costs in 2022 would be around $5 billion, double what it previously thought.

Chevrolet refused to speak with CNBC about profitability or the cost of building the Bolt EV and EUV models. However, since they’re cheaper, the profits are likely lower than other new vehicles. Additionally, Bolt models haven’t made this switch to GM’s Ultium technology. The new platform and batteries are used in the Hummer EV, Cadillac Lyriq, and future EVs from the automaker. With new technology comes a higher cost, so the Bolt can remain affordable while others’ prices skyrocket.

Why did Chevy drop the price of the Bolt EV and EUV?

Chevy told CNBC the price drop for the Bolt lineup “is an effort to stay competitive in the EV marketplace and better aligns the manufacturer’s suggested retail price with the average sale price for the customer.” As you might expect, the lower Bolt prices will increase sales of the EV. In addition, being the cheapest model in the country is always a bonus.

Next, most GM electric vehicles don’t qualify for federal tax incentives. That’s disappointing compared to other automakers, where buyers can get up to $7,500. However, Bolt owners can still be eligible for state EV incentives. As a result, the shockingly affordable EV would be even cheaper.

Chevy drops Bolt EV price despite rising costs

In conclusion, nearly every EV automaker is increasing its prices to offset rising costs. However, the Chevy Bolt EV and EUV models just got cheaper. Chevy is suffering from the same upward trending commodity costs but reduced the price of its most affordable EV. As of right now, the 2023 Chevy Bolt EV will be the cheapest electric vehicle in the US. However, not all EV starting prices for 2023 are available yet, so we’ll see what happens.