Tesla's surprise price cuts last month have sparked lower stickers and lease deals from some competitors, but it's still too early to call it an electric vehicle price war, analysts say.
While Ford trimmed up to $5,900 off some versions of the Mustang Mach-E last week after Tesla's $13,000 cut on the Model Y, most other automakers say they are sticking to current EV pricing.
General Motors, Volkswagen, Hyundai and Kia — the top EV players in the U.S. after Tesla and Ford — said they are sitting out the current round of EV price reductions for now. So are luxury brands such as Mercedes-Benz and Polestar, which are still small players in the U.S. EV market. BMW said it wasn't sharing its pricing plans.
"I think it's too early to say for sure if it turns into a price war," said Stephanie Brinley, principal automotive analyst at S&P Global Mobility. "We're seeing different reactions from different automakers. It's not settled that just because Tesla dropped prices, everyone else has to."
Brinley said that Ford's price cuts, which were the most significant response to Tesla, were focused on higher-end trim levels of the Mach-E. The base model received only a $900 reduction to $47,495 with shipping. "I don't think Ford's price drop was as dramatic as it sounds," she said.
GM, which has competitively priced its Bolt EV hatchback and Cadillac Lyriq crossover, said it is working on a portfolio of mainstream EVs at a variety of price points.
"When we look at our strong product portfolio and the interest that we have at the prices that we've already announced, we feel that we're well-positioned," CEO Mary Barra said on an earnings call last week. "Of course, we're going to monitor it and we'll make sure we remain competitive."