Kia America recently announced its 2023 pricing for the EV6, as reported by The Verge.

The new price shows a significant 16 percent price hike as the Kia EV6 will start at $49, 795 with a $1,295 destination charge, compared to last year's model. The Light base model of EV6 started at $42,695 with the destination charge also included. 

However, it's not impossible that the Kia EV6's price will reach $50,000 as there will be dealer markups as well. 

Is the US Government to Blame?

Inflation is here, but is the US Government to blame for this? President Joe Biden's government has been fighting climate change and has even put it as top priority. However, it seems like there was a lack of strategy with EV adoption, because as prices rise, then there will be more people who won't be able to afford an EV. 

The promise of affordable EVs seems to not be going so well. Instead, the public is getting models that aspire to be affordable but remains to be out of reach with the price. 

For one, Ford's F-150 Lighting said it would start at $40,000 but now it starts at $59,000. Even the affordable models, like the Hyundai Ioniq 5 also has jacked up its price. Even Tesla shot ups it prices for its lineup by as much as $60,000. 

The US has been pushing electric cars as the solution to climate change, but the recent price hikes shows that the government may have a problem on the horizon.

Also Read: Kia, Hyundai EV Sales in the US Increase in March | Kia EV6, Hyundai Ioniq 5

Global Chip Shortage

On top of the price hikes, there is also a global chip shortage that is affecting EV batteries. Being a technology that is dependent on the electronics, EV batteries need chips to be made, and then put on the batteries. The problem is, the global demand for chips is high. And the supply is low, causing the prices to rise. With other components becoming more expensive, it's no wonder that EV prices are jacked up.

This is not just happening in the US but around the world as there is a global chip shortage. This shortage has already caused a lot of tech giants to delay their releases and release cut down versions of the hardware, or just release the hardware at all. 

Global semiconductor companies are now struggling to create enough chips to make all the tech products. 

With the chip shortage, there is also a shortage of people and machines needed to create chips. In fact, there is a shortage in everything. The shortage may take up to two years to stabilize. 

This is all due to the growth and demand in the semiconductor industry as advanced technology demand the chips. There's not enough machines out there to make the chips, and the people are already working overtime to provide the chips. This leads to shortages, and then the price hikes. 

Related Article: Kia Plans to Produce EVs in the US by 2024: Here's Why

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Written by April Fowell