The move by Ford has sparked reactions from industry analysts. Dan Ives, an analyst with Wedbush, believes that the price cut by Ford will encourage other EV manufacturers to also lower their prices, thereby starting a mini-price war in the US EV market. This comes in response to Tesla, the leader in EV sales in the US, which began lowering the prices of its Model 3 and Model Y vehicles in China last October and then in the US shortly after.
Tesla’s CEO, Elon Musk, has credited the recent price cuts as a major reason for a January demand surge, which he stated was the strongest in Tesla’s history. Despite this, Tesla’s shares have declined by as much as 4.35% from their best week since 2013 and are currently trading at $170.17 each.
