Tesla CEO Elon Musk Admits Lower Priced EVs From Rival Automakers Are A Problem, But 'Not One That Will Last'
Portfolio Pulse from Anan Ashraf
Tesla CEO Elon Musk acknowledges that lower-priced EVs from rival automakers are a problem but believes it is a short-term issue. Ford, for example, has been selling its Mustang Mach-E at a lower price than Tesla's Model Y, resulting in significant losses for Ford's EV segment. Tesla plans to introduce more affordable vehicles starting in the first half of 2025.
August 05, 2024 | 11:12 am
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NEUTRAL IMPACT
Tesla CEO Elon Musk acknowledges that lower-priced EVs from rival automakers are a problem but believes it is a short-term issue. Tesla plans to introduce more affordable vehicles starting in the first half of 2025.
While the lower-priced EVs from rivals are currently a challenge, Musk's statement that this is a short-term issue and Tesla's plan to introduce more affordable models by 2025 suggests a neutral short-term impact on Tesla's stock price.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100
NEGATIVE IMPACT
Ford's EV segment, 'Model e,' recorded an EBIT loss of $1.14 billion in the second quarter and expects to incur a loss of $5 billion to $5.5 billion for the year. The Mustang Mach-E, priced lower than Tesla's Model Y, is contributing to these losses.
Ford's significant losses in its EV segment due to aggressive pricing strategies are likely to have a negative short-term impact on its stock price.
CONFIDENCE 85
IMPORTANCE 90
RELEVANCE 80