This Is Disastrous News for EV Stocks

By Travis Hoium – Mar 5, 2024 at 7:58AM

NASDAQ: TSLA

Tesla

Market Cap

$537B

Today's Change

(-1.11%) -$1.89

Current Price

$168.29

Price as of April 26, 2024, 4:00 p.m. ET

Tesla is cutting prices again in China, and it looks like there's no end in sight to the EV price war.

Tesla (TSLA -1.11%) has been in an ongoing battle with Chinese competitors on one end and an oversupplied electric vehicle (EV) market on the other. The impact on the company has been falling sale prices and, ultimately, declining margins.

This week's news that Tesla has cut prices again is not only bad for Tesla but also disastrous news for some smaller EV companies that once had high hopes.

*Stock prices used were end-of-day prices of March 4, 2024. The video was published on March 4, 2024.

Travis Hoium has positions in General Motors. The Motley Fool has positions in and recommends BYD and Tesla. The Motley Fool recommends General Motors and recommends the following options: long January 2025 $25 calls on General Motors. The Motley Fool has a disclosure policy. Travis Hoium is an affiliate of The Motley Fool and may be compensated for promoting its services. If you choose to subscribe through their link, they will earn some extra money that supports their channel. Their opinions remain their own and are unaffected by The Motley Fool.