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The price cuts could be great for consumers but bad news for investors.
Ford (F 1.21%) is following Tesla (TSLA 3.30%) in cutting electric vehicle (EV) prices. Typically, when a company follows a competitor in cutting prices, it signifies the start of a price war. These actions tend to bring profit margins down industrywide, which is terrible news for investors.
*Stock prices used were the afternoon prices of Jan. 29, 2023. The video was published on Jan. 31, 2023.
Parkev Tatevosian, CFA has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Tesla. The Motley Fool has a disclosure policy. Parkev Tatevosian is an affiliate of The Motley Fool and may be compensated for promoting its services. If you choose to subscribe through his link, he will earn some extra money that supports his channel. His opinions remain his own and are unaffected by The Motley Fool.
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