Xpeng hikes price of electric cars after Tesla as material costs rise

A Xpeng P7 electrical motor vehicle is on exhibit during the 18th Guangzhou Intercontinental Auto Exhibition at China Import and Export Truthful Intricate on November 20, 2020 in Guangzhou, Guangdong Province of China.

VCG | Visible China Group | Getty Images

Chinese electric powered vehicle maker Xpeng will hike the cost of its vehicles citing a sharp rise in the cost of raw elements.

Xpeng explained from Mar. 21, rate boosts on its vehicles will array from 10,100 Chinese yuan ($1,587) to 20,000 yuan right before subsidies. The company did not give a breakdown of the unique cost rises for just about every of its models.

Xpeng at present sells the flagship P7 sedan, the P5 sedan and the G3 sports utility auto. It is gearing up to start the G9 SUV afterwards this year.

Electric carmakers have been battling with climbing fees of uncooked products these as nickel, which is a vital ingredient of batteries. Other parts these as semiconductors keep on to be in small offer, offering a different headwind for Xpeng and its rivals these kinds of as Nio.

Xpeng is not the 1st electric motor vehicle enterprise to increase charges. In excess of the last week, Tesla has completed numerous cost hikes across many styles of its cars and trucks.

Previously this week, Warren Buffett-backed automaker BYD also raised the prices of its new strength cars, which consists of electrical vehicles.