By Investing.com Staff
Global Equities Research analysts weighed in on news Ford (NYSE:F) cut its Mach-E price between $600 to $5,900, which follows cuts from Tesla (NASDAQ:TSLA) and proclaim the "recession EV price wars have started" and expect another 15-20% fall in EV prices.
The analysts said, "EV Customer is highly price sensitive," and prices in the current recession must be adjusted accordingly.
They claim Tesla's S/X price points will need to be between $70,000 and $85,000 - anything above this will be priced out of the market.
Further, they said Tesla's model 3/Y price points will need to be between $35,000 and $50,000 - anything above this will be priced out of the market.
Currently, Tesla's competition is priced out of the market, the analysts said, and if they wish to compete, they need to compete at the price points noted above.
On Tesla's FSD, the analysts said at $15,000, it is priced out of the market. They think the most Tesla can charge for FSD is $2,500.
In the current recession, Tesla's competition will likely go out of business, the analysts conclude. They just don't have the scale and cost structure of Tesla.