The global price war in the electric vehicle market is escalating as declining demand forces automakers to cut prices not only in China, according to Nikkei.
In the United States, Tesla introduced lower—spec versions of the Model Y and another flagship car, which saw its price drop by about 10% —the Model Y now costs from $39,990 -after the Trump administration cancelled the $7,500 federal electric vehicle tax credit in late September, effectively making many models It is about 20% more expensive and has forced Tesla to defend its market share (now it is less than 50% versus >80% five years ago); its shares fell by 4% after this news. Cost reduction is complicated by dependence on rare earths of Chinese origin amid trade disputes.
Competitors are following suit: GM and Ford plan to launch electric vehicles priced under $30,000, Hyundai is cutting prices in the United States by 20% and promoting cheaper models in Europe, India and China. In Japan, where electric vehicle penetration is lagging, Nissan lowered the base price of the Leaf to ~5.19 million yen, and BYD offered temporary discounts of up to 1.17 million yen as Chinese brands move abroad.
