EV Prices Closer Than Ever To Combustion Engine Cars, Thanks To Tesla's Fierce Price Cuts Last Year: Cox
Portfolio Pulse from Ramakrishnan M
Tesla Inc.'s (NASDAQ:TSLA) price cuts in 2023 have significantly reduced the price gap between electric vehicles (EVs) and internal combustion engine (ICE) vehicles. Cox Automotive reports that by December, the average Tesla vehicle price was $50,051, close to the average ICE vehicle price of $48,759. The average EV price also dropped to $50,798. High inventory levels for EVs were reported, but Tesla and Rivian Automotive Inc. (NASDAQ:RIVN) were excluded from this data. The University of Exeter suggests EVs may become more affordable than gas vehicles in the U.S. this year. Ford Motor Co (NYSE:F) paused its $12 billion EV funding due to high EV costs and customer reluctance.
January 09, 2024 | 12:04 pm
News sentiment analysis
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NEGATIVE IMPACT
Ford paused its $12 billion EV funding due to high costs and customer reluctance, which may reflect challenges in its transition to EVs and impact investor sentiment.
Ford's decision to pause its significant EV investment could be seen as a negative signal regarding its commitment to the EV market and its ability to compete with lower-priced options, potentially affecting investor confidence and the stock price in the short term.
CONFIDENCE 75
IMPORTANCE 75
RELEVANCE 80
NEUTRAL IMPACT
Rivian, which operates on a direct-to-consumer model, was excluded from the inventory data, indicating a different sales strategy from traditional manufacturers.
Rivian's exclusion from the inventory data due to its sales model makes the impact of the news less direct. However, the overall trend towards more affordable EVs could benefit Rivian as well, although the short-term impact is neutral.
CONFIDENCE 70
IMPORTANCE 60
RELEVANCE 50
POSITIVE IMPACT
Tesla's aggressive pricing strategy has led to a reduction in the average price of its vehicles, potentially increasing its competitiveness and market share in the EV sector.
Tesla's price reductions are likely to make its vehicles more attractive to consumers, potentially increasing sales and market share in the short term. The news is highly relevant and important for Tesla investors as it directly affects the company's pricing strategy and competitive position.
CONFIDENCE 80
IMPORTANCE 85
RELEVANCE 90