The limited availability of electric vehicles and low interest rates pushed prices sky-high in 2022. That has all since changed this year.
Let's begin with the GMC Hummer EV. Limited production and cheap interest rates pushed the price of the truck on the secondary market to as high as $275k. Those with reservations could purchase the EV for around $100,000 MSRP (and the smart ones sold on the secondary market).
Bring a Trailer auction results show a bunch of idiots paid a hefty premium for the Hummer EV, including $275k on April 1, 2022, $238k on May 23, 2022, and between Sept. 2022 and June 2023, more than a dozen sold over the $150k.
Now comes the fun part. Prices have been cratering this fall: On October 17, a Hummer EV sold for $122k, while several others failed to reach the reserve. The most recent one, on Wednesday, was unable to meet the reserve, with bidders only willing to pay up to $112k.
So what's happening? A combination of elevated borrowing rates plus GMC's increased production rate of the Hummer EV has sent prices tumbling. In the overall EV market, prices are tumbling because of Tesla Motor's price war.
According to Kelley Blue Book data, Tesla’s price war has pushed down new EV prices in September by more than 22% year over year, from $65,295 to $50,683.
We recently reported demand for EVs is souring as the "number of unsold electric vehicles at dealers in the second quarter tripled compared to the past year, signaling a weakened demand for the segment."
For everyone who purchased Hummer EVs at exorbitant prices, thanks for playing.