Vehicle cost is a major barrier to electric truck adoption. That barrier has been getting higher, not lower, over the past five years.
A new study from the International Council on Clean Transportation shows that the price of Class 6-8 electric trucks has increased since model year 2020. This is despite a 20% drop in battery pack costs.
Comparatively, prices are falling for Class 5 and smaller electric commercial vehicles. Electric cargo van and full-size pickup truck prices are down 42%. Larger walk-in electric vans and electric utility trucks model year 2025 are 46% cheaper than they were with model year 2020.
When it comes to heavy-duty commercial vehicles, it costs more to buy an electric version today than it did five years ago.
Median prices for Class 8 electric trucks are up 27% since model year 2020. They now cost over $411,000, which is $87,000 more than before.
Diesel truck prices have also risen, but not as much. A new diesel truck costs about $172,500, up $18,000 (12%) since model year 2020.
Fleets may face even higher costs soon. The federal Commercial Clean Vehicle Credit offers up to a $40,000 tax credit for electric truck purchases. However, that ends on Tuesday, Sept. 30.
Any sticker shock relief will have to come from the states. Nearly 80% of the price data points in the study come from electric trucks bought with state incentives. Some states offer vouchers or rebates for electric trucks. Many of those states had adopted California’s Advanced Clean Trucks rules, which were eliminated in June.
The United States appears to be an outlier when it comes to electric truck prices. In the European Union, prices for Class 7-8 equivalent electric tractor trucks and straight trucks have fallen by 32% and 23% respectively.
What’s driving up electric truck costs?
Several factors may drive up electric truck costs, with stakeholders pointing fingers at each other.
Manufacturers told researchers changes in raw materials costs and higher demand for vehicle warranties have raised the price tag. One manufacturer said it has no control over the final price, suggesting dealerships may be at least partially responsible. However, one trucking fleet rep pushed back, saying dealerships work in slim margins and are vulnerable to pricing that manufacturers give them.
New players have also entered the market. Initially, new manufacturers were offering electric trucks while legacy manufacturers stuck with diesel. Newer companies offered lower prices to capture a larger market share.
Now, legacy manufacturers have entered the arena. With market dominance and customer loyalty, it is possible big companies like Daimler and Volvo drove up prices.
Differences between U.S. and European Union prices may be more easily explained. To start, there are significant supply chain differences between the two. Also, U.S. trucks will likely always be more expensive because of longer driving ranges that require larger batteries.
What can drive down costs?
Researchers have suggested that higher price tags may come from consumers not knowing the price in the first place.
The study notes that, unlike electric passenger vehicles, electric truck prices are not publicly available. Making these prices public could lower costs and boost electric vehicle adoption. One way to do this is to require state incentive applicants to report electric commercial vehicle prices.
“Cheaper upfront prices will make zero-emission products more accessible to fleet customers,” the study states. “Importantly, lower purchase costs amplify the total cost of ownership advantages of zero-emission commercial vehicles compared with internal combustion engine options.”
While lower upfront costs can ease one barrier to electric truck adoption, many others remain. Limited mileage ranges mean electric commercial vehicles cannot travel as far as diesel trucks before needing to recharge. The current heavy-duty charging infrastructure is sparse, causing logistical challenges for electric truck fleets.
Last year, Ryder released a report highlighting issues with electric trucks. It found that switching to electric would double its Class 8 vehicle operating costs. The weight of electric commercial vehicles reduces payload capacity, requiring Ryder to double its number of trucks and drivers to carry the same loads. LL
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