Rivian, Lucid, Tesla Shares Fall As Price War Intensifies

Shares of Rivian Automotive, Lucid Group, and Tesla Motors fell during the US financial session after Ford Motor announced a price cut for its F-150 Lightning electric pickup truck amid concerns about slipping demand in the EV industry. Meanwhile, the EV price war between automakers continues as unprofitable EV startups struggle to survive.

Let’s start with a Bloomberg a report that says Ford is cutting the price of its electric pickup truck by up to 7.5%. Earlier this year, the company discontinued production of trucks and is expected to start production later this month

The biggest price reduction is on the long-range Flash model, where customers can expect to save $5,500. The model now starts around $67,995. Ford told Bloomberg that the price cuts will help it “adapt to the market to achieve the best combination of sales growth and customer value.”

Declining demand for EVs has prompted CEO Jim Farley to reevaluate Ford’s EV strategy by cutting back on battery-powered vehicles by $12 billion, delaying the launch of a range of models, and beginning to offer an expanded lineup of gas-electric hybrid vehicles. throughout North America.

Thousands of car dealers across the country he warned recently ‘climate change heroes’ in the White House: the 2030 EV push is backfiring.

“Currently, there are many excellent battery electric vehicles available for consumers to purchase. These vehicles are ideal for many people, and we believe that their appeal will increase over time. The truth, however, is that the demand for electric vehicles today is not keeping up with the tide. A large number of BEVs arriving at our dealerships driven by the current BEV regulations are piling up on our lots,” dealers said.

They warned: “Already, electric cars are piling up in our polls which is our best indicator of customer demand in the market.”

Many consumers disagree with US government and corporate EV adoption initiatives. This now backfires completely, if even Tesla’s first quarter delivery was delayed behind expectations, which could indicate a price cut is coming.

“Reports of Ford cutting prices for the F-150 Lightning EV are sending shockwaves through the EV market, particularly affecting Rivian and Lucid,” Bloomberg Intelligence analyst Steve Man said.

Man said, “Both startups are facing challenges that could be triggered by another round of EV price cuts, which could destroy their profits and cash reserves when they need to save money.”

Rivian shares fell further, down 6.5% in early afternoon trading. Shares of Lucid were down nearly 2.5%, and Tesla was flat on the session.

Note analyst Adam Jonas at Morgan Stanley recently proposed reinforcement comes to industry:

What a tumultuous time for the EV space… Someone tell Biden tell Powell … moar rate cuts, please, to fix the green bubble.

Written by Zerohedge.com

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