Many obstacles lie in the path of EV adoption in the United States, including a poor infrastructure for vehicle charging, as well as the high cost of EVs compared to their gas-powered brethren.
While segment leaders like Tesla (TSLA) -) have cut the prices of their most popular cars, dealers of other, more established brands are being led by dealers who are taking a peculiar, but different approach.
Related: These top 10 cars take the longest to sell (and it's not even close)
A report from CarsDirect found that Chevrolet dealers taking delivery of the new Chevrolet Blazer EV have been adding their own markups on top of the manufacturer’s suggested retail price.
They found that dealers around the country, including those in Wisconsin and California have added a $10,000 markup on top of the $60,215 MSRP of a middle trim Blazer EV RS.
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Though markups are added on for dealers to adapt to "market conditions," they do not create a healthy comparison in regards to the competition.
The Chevy’s direct competitor, the Tesla Model Y starts at a polarizing $38,990 before federal tax incentives after its most recent price cut. While Elon Musk’s offering comes standard with all wheel drive, buyers of the Blazer EV will have to cough up $56,715 if they want a similarly equipped car, as long as the dealership does not add any additional markups.
The Blazer EV is just another one of General Motors (GM) -) electric products that have fallen victim to aggressive dealer markups. GMC’s huge Hummer EV is the most notorious example, with owners facing markups of up to $50,000 on top of the six-figure MSRP, even after General Motors discouraged its dealers from doing so early last year.
More Business of EVs:
- A full list of EVs and hybrids that qualify for federal tax credits
- Here’s why EV experts are flaming Joe Biden’s car policy
- The EV industry is facing an unusual new problem
Though the Blazer EV is still new to the market, other establishment manufacturers are also hopping on the wave of offering their electric models at a lower price.
Following disappointing sales for the F-150 Lightning electric pickup, Ford (F) -) is offering buyers up to $7,500 before tax incentives, while Hyundai (HYMLF) -) has cut the lease prices of the popular IONIQ 5 crossover and IONIQ 6 to better align itself with Tesla after its latest price cuts.
The dealer markups are just one side of General Motors’ poor execution of its EV rollout. On Oct. 17, the Detroit giant revealed that it will delay production of the Silverado EV and GMC Sierra EV at its Michigan Orion assembly plant until 2025.
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