Automobile Latest News Updates1 min read
Manufacturers of electric vehicles should reconsider their raw material supply chains, according to RBC.
As the Ukraine conflict worsened, prices for everything from gasoline to metals essential in the production of electric vehicles skyrocketed. “Just turning on the lights in the factory and shipping of goods cost more now, and there is a margin pressure,” says RBC analyst Joseph Spak. He believes that a long-term increase in raw material prices, rather than a short-term shock, might become a problem for automakers. Even Tesla, the world’s leading electric vehicle manufacturer, is seeing “substantial” raw material and logistical price increases, according to Elon Musk, the company’s CEO.