Tesla aims to be the global market leader. That’s pretty much a given, but the competition in China is incredible compared to other markets. Most of us know about the recent price cuts for electric vehicles with price drops for their entire lineup, but did you know that many automakers have them in China?
Ford was the only automaker to respond by cutting Tesla EV prices
When Tesla announced price cuts to consumers for all four EV models, Ford was the only brand to follow suit in the US. Ford has cut the prices of electric cars, making them competitive with some Tesla models. Why haven’t other automakers cut electric car prices?
He tells us that, other than Tesla, the brands that have cut prices for electric cars in China are:
- Ford: Median price reduction of $5,849
- Nissan — Median price cut of $8,773
- Toyota: Average cut price, $4,386
- Xpeng – average price cut of $5,264
- BYD – Reduced average price by $1,299
Recently, Volkswagen and BMW have joined the mix, lowering electric vehicle prices for their Chinese offerings with:
- BMW – $14,643 median price cut
- Volkswagen — lower average price of $5,849
BMW offers a different version of the i3 than we see in the US, and Volkswagen brings the ID.4, ID.6 and ID.3 to China.
Although Tesla has started this price war with other electric car manufacturers, it is far from being the price leader in China. The same can be said in the United States, but when a company lowers prices, the expectation is that prices should drop for similar vehicles of all brands.
Have other automakers practiced price cuts for electric cars in Europe?
So far, the European market has reported slightly fewer discounts on Tesla cars than what we’re seeing in the US and what’s being offered in China. This small price reduction hasn’t been met with a strong reaction from other electric brands yet.
What does this mean for future electric vehicle pricing in the US?
As our market changes to offer more electric vehicles, we may see a massive price war between automakers. Many companies are just getting started, and over the next few years, we expect to see broad electric vehicle lineups from the four GM brands and Stellantis along with Ram, Chrysler and Dodge. Other names like Toyota, Honda, Subaru, and Nissan are just a few of the brands that are also building their EV lineup for the North American market.
The next few years will certainly be interesting as we see the growth of electric cars and more competition for Tesla in America.
Then, check out or learn more about upcoming electric cars from various brands in this video below:
