The 2025 Volvo EX90 is set to arrive with a higher price tag than initially expected, with the electric SUV’s price increasing by $3,300 before deliveries even begin. The new starting price is $81,290, including a $1,295 destination charge, up from the original $77,990 announced last fall.
Volvo cited rising material costs as the reason for the price hike, a change communicated to reservation holders and dealers on June 26. Despite the increase, production of the EX90 is now underway at Volvo’s South Carolina plant, with the first U.S. deliveries expected by the end of the year. This plant will also produce the Polestar 3 for the American market.
However, the journey of the EX90 has been far from smooth. Originally unveiled in November 2022, the vehicle has faced delays due to software issues, which have pushed back its delivery timeline. Some key features, including Apple CarPlay and Plug & Charge, will be missing at launch, with Volvo promising future updates to add these functionalities later.
These challenges come at a time when demand for EVs is cooling. Some Volvo dealers have expressed concerns about the brand’s plan to transition exclusively to electric vehicles by the end of the decade, urging the automaker to continue offering plug-in hybrids.
Adding to the complexity, Volvo has also delayed the U.S. launch of its EX30 electric subcompact crossover due to increased tariffs on Chinese-made EVs. The company now plans to wait for European production to bypass the tariffs, pushing the U.S. release to 2025, a year later than initially planned.