An EV Pricing War? Behind Tesla and Ford’s Price Cut Strategies | WSJ

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Weeks after Tesla slashed prices on a number of its models, Ford Motors dropped the price of its electric Mustang Mach-E. Some analysts called Tesla’s price cut an attempt to start an EV pricing war.

WSJ auto reporter Nora Eckert compares the auto makers’ strategic moves and explains what this means for the industry.

Photo illustration: Josephine Chu

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Until the other brands have a nationwide super charging network I would never be able to buy an EV that's not a Tesla.

kevinnnnn
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Tesla had to cut pices because the government tried to price them out of the tax credit.
If you make enough money per car you can actually do this.

CHMichael
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Apart from Tesla's competitive edge in manufacturing, the real reason why these legacy automotive companies WON'T catch up to Tesla is because these legacy manufacturers still rely on dealer networks to sell their vehicles. Tesla is entirely direct-to-consumer, meaning they capture the profit that would have otherwise been going into the dealer's pocket. Until these OEM's can break their dependence on these dealer networks, Tesla will continue to dominate the EV market.

camf
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The 20% price drop happened after a 25% price increase. I bought my Model Y long range for 52k in late 2020 (50k without the extra options). I'm glad they managed to tame the supply chain cost and that they are passing those savings back to consumers..

joshb.
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Teslas are the best value, and the charging network is way better than competitors

LUKE
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It can only happen in the US that you need to classify your expensive car as an SUV to get federal grants. You aren't doing the world a favour by driving 3 tonnes of metal around.

walli
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If a company raises prices due to inflation of cost of materials, that is not absorption. They are literally transferring the cost onto the consumer

rockfire
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Tesla's vertical integration is its biggest advantage.

JJs_playground
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I had no idea Ford lower their prices. But then again, I live in Europe, and here we don’t buy those joke of a car

leonelbustosb
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Poaching customers from Tesla?
More like poaching customers from ICE vehicles

lone_wolf_XIII
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Kia & Hyundai being two brand of the same company it is not correct to say Ford is nr two. Also Vw, Audi, Porsche, Skoda, Seat & Cupra (the later 3 not sold in the US) are all from VW group…

marcbungener
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the policy imposed by governments can alter both car makers' and customers' buying behavior in EV industry

yu-tingcheng
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It was good for him elon. I bought a Tesla 3 weeks ago and it’s because of the price cuts. If he didn’t lower his prices I would have gone with someone else or just stick with combustion engine cars. But the price cut gave Tesla my business. So the price cuts helps him gain or keep market share.

tanman
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GM doesn't need to respond to price cut because GM is the clear market leader. In their most recent earnings they literally said GM is the mainstream EV leader.

Mary led and it matters. 😂

kenypowa
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Tesla is technology. People complaining that they feel "duped" since they're now cheaper than when they bought do not understand that technology decreases in value over time.

davidcantor
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Wait, you _still_ have tax credits for SUVs?!

johnknight
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Will gas motor cars be phased out in the future for electrical

yongchen
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Tesla is feeling heat with competition.

easyeducation
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They should work on their “quality control” first. No point having a Tesla if it becomes a bathtub on wheels when it rains

unknownuser
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Couple of points here in Canada. The price cuts from Tesla had the biggest influence on used Tesla prices. Previous to the cuts many seller were asking more than new price for many models sanity has now returned and used prices are more in line with reality. I was in the market for a KIA EV6 but the few that were available were 2022 models from KIA dealers and carried a markup of some $20K over factory published 2023 prices despite being demos and being last year model. The situation was even worse for a factory order. No dealer could promise delivery and all planned on adding whatever markup the market would bare whenever cars became available. Tesla was also an interesting case as the Model 3 LR AWD is not available to order and the performance model not being discounted and not qualifying for incentives. I finally settled on a used 2022 AWD LR which was my second choice as a new order.

richardcalon