Tesla’s price cuts promise more trouble for money-losing US EV startups

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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.

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Tesla’s price cuts promise more trouble for money-losing US EV startups

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.

Disclaimer

We strive to uphold the highest ethical standards in all of our reporting and coverage. We StartupNews.fyi want to be transparent with our readers about any potential conflicts of interest that may arise in our work. It’s possible that some of the investors we feature may have connections to other businesses, including competitors or companies we write about. However, we want to assure our readers that this will not have any impact on the integrity or impartiality of our reporting. We are committed to delivering accurate, unbiased news and information to our audience, and we will continue to uphold our ethics and principles in all of our work. Thank you for your trust and support.

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