A price war in electric vehicles sparked by market leader Tesla Inc has made it much more difficult for money-losing US startups such as Rivian Automotive Inc and Lucid Group Inc to gain a foothold in an industry battling for shrinking consumer wallets.
Tesla’s decision last week to slash global EV prices by up to 20% could attract new buyers to the industry, but it will also force other automakers to respond with lower prices or risk being left behind, analysts and investors said. Some startups may be unable to afford lower prices due to staggering raw material and production costs combined with far lower output than Elon Musk’s Tesla, which delivered over 1.3 million vehicles last year.
