Latest news with #pricewar
Gizmodo
4 days ago
- Automotive
- Gizmodo
Tesla Is Having a Huge Sale Before Key EV Tax Break Disappears
Tesla has fired the first major shot in a brewing electric vehicle price war, launching a series of aggressive new promotions across its lineup as the market braces for the end of a crucial federal incentive. With the $7,500 federal tax credit for new electric vehicles set to expire on September 30, Elon Musk's company is moving preemptively to lock in buyers and pressure competitors. On a newly updated section of its website titled 'Current Offers,' the company warns of 'Limited Inventory – Take Delivery Today,' adding that 'All promotions are subject to change or end at any time.' The move is a clear strategy to counteract a cooling market and the loss of government aid that has helped fuel EV adoption. These new incentives are multifaceted, combining general offers with model-specific discounts to maximize appeal: This aggressive sales push comes as Tesla navigates a challenging period. The company reported a 13.5% decline in global vehicle sales in the second quarter of 2025. In the United States, its primary market, sales fell 12.6%, though it still commands a dominant 46.2% market share. The end of the federal tax credit threatens to complicate the landscape for all EV makers. As of early 2025, the average transaction price for a new electric vehicle was approximately $55,614, considerably higher than the $48,641 average for a new gasoline-powered car, according to data from Chase. Without the subsidy, that price gap becomes even more pronounced for consumers. Tesla appears to be getting ahead of the problem by creating its own cushion. The company's new promotions are designed to mimic the impact of the tax credit, giving buyers a reason to move quickly before prices—or eligibility—change again. Elon Musk and Tesla didn't wait too long. They are daring the competition to do the same. The question is not will they, but can they? With margins already tightening across the industry, Tesla's bold strategy could force rivals to follow suit or risk losing market share. But not every automaker has the financial room, or software-powered revenue streams that Tesla does. The EV price war has begun. The real question now is who will survive it.
Yahoo
6 days ago
- Automotive
- Yahoo
Why It's Time For Nio to Go Big
Key Points One study predicts that only 15 of 129 Chinese NEV brands will be viable by 2030. Notably, those 15 brands will generate roughly 75% of China's NEV sales. China's brutal price war will eventually force consolidation. 10 stocks we like better than Nio › For investors, Nio (NYSE: NIO) has always been a swing for the fences. This young electric vehicle (EV) maker took a slightly different route, preferring to spend extensive capital and effort to build out its battery swapping stations. While mostly known for its namesake Nio premium EV brand, the company has recently launched two sub brands, Onvo and Firefly, which are expected to significantly boost deliveries as production accelerates. All that said, it's time for Nio to go big with its new brands, because according to one study, it's end-time in China for a long list of EV brands. Dire warning Consultancy AlixPartners sent a dire warning to anyone interested when it said that only 15 out of the 129 brands currently selling EVs and plug-in hybrids in China will be financially viable by 2030. That's not great news for just about any automaker outside of China's own juggernaut, BYD. Those 15 brands remaining financially viable are predicted to account for roughly 75% of China's EV and plug-in hybrid market over the same time period. By the consultancy's count, that means each of the 15 brands would be averaging roughly 1.02 million units in annual sales. This makes the industry a lucrative proposition if you survive the consolidation and bankruptcies. What's the problem? At a glance, China's new energy vehicle (NEV) market looks like it's in fine shape. During June, sales of NEVs climbed 30% and accounted for a staggering 53% of overall new-vehicle sales in China. Of that chunk of the broader market, Chinese EV brands account for 71% of NEV sales. In a way, China's EV makers are victims of their own success, and of their government's subsidies. While the overcrowded and highly competitive market has fostered incredible advances in battery technology and cost efficiency, it's also left the entire market in a brutal and unsustainable price war. The price war is making it extremely difficult to protect market share and bottom lines. Time to go big The current environment in China is ripe for a company such as Nio -- with an established premium EV brand and two new brands accelerating production and deliveries -- to boost its deliveries and either build the scale to break even, or position itself as an ideal partner for industry consolidation. Already, Nio is aiming to double its vehicle deliveries from 2024 to this year, leaving them at roughly 450,000 units. Nio is currently slightly behind pace to achieve that. If that target wasn't ambitious enough, management is also aiming to break even by the end of 2025. That would be a large and impressive task indeed, but Nio has made progress on significantly reducing costs and supporting margins despite the ongoing price war. The rest of 2025 will tell us a lot about how Nio is positioned for potential mass consolidation in the Chinese EV industry, but it sure looks like a good time to double down on its marketing, incentives, and production efficiencies to really drive its new brands to new heights. For Nio, it's time to go big and prepare for many competitors to go home. Should you buy stock in Nio right now? Before you buy stock in Nio, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Nio wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $679,653!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $1,046,308!* Now, it's worth noting Stock Advisor's total average return is 1,060% — a market-crushing outperformance compared to 179% for the S&P 500. Don't miss out on the latest top 10 list, available when you join Stock Advisor. See the 10 stocks » *Stock Advisor returns as of July 15, 2025 Daniel Miller has no position in any of the stocks mentioned. The Motley Fool recommends BYD Company. The Motley Fool has a disclosure policy. Why It's Time For Nio to Go Big was originally published by The Motley Fool
Free Malaysia Today
7 days ago
- Automotive
- Free Malaysia Today
China moves to tame ‘irrational competition' as EV price war persists
Beijing has poured vast state funds into the EV sector, supporting the production of less polluting battery-powered vehicles. (Reuters pic) BEIJING : Chinese officials are seeking to tame the country's swelling electric vehicle (EV) industry with policies to prevent 'irrational competition', state media said, as a brutal price war ensnares top automakers. Beijing has poured vast state funds into the EV sector, supporting the development and production of less polluting battery-powered vehicles. However, a price war has left many startups bust as firms flood the domestic market with low-cost cars and trade-in schemes, offering huge discounts to customers to give up their old auto for a new one. Domestic criticism has mounted in recent months against intra-industry 'involution' – a popular tag used to describe the race to outcompete that ends up nowhere. 'A meeting of top officials in Beijing – chaired by Premier Li Qiang – called yesterday for tighter price monitoring and improving long-term regulation of competition in the sector,' state news agency Xinhua said. 'Officials called for stronger order in the new energy vehicle market to 'curb irrational competition' and spur more healthy development,' Xinhua said. 'It is necessary to… strengthen industry self-discipline' and help companies enhance their competitiveness through technological innovation,' the agency quoted officials as saying. The China Association of Automobile Manufacturers, a top industry group, warned in May that 'disorderly' competition would exacerbate harmful rivalry and hurt growth. Analyst Bill Bishop wrote in his Sinocism newsletter that the wording of yesterday's readout could suggest Beijing will place 'price controls' on EVs. 'The language on the new energy vehicle (NEV) industry was tough, in another sign that the government is going to intervene to rectify the 'irrational competition' in the industry,' he wrote.
Malay Mail
7 days ago
- Automotive
- Malay Mail
China moves to tame ‘irrational competition' as EV price war persists
BEIJING, July 17 — Chinese officials are seeking to tame the country's swelling electric vehicle industry with policies to prevent 'irrational competition', state media said, as a brutal price war ensnares top automakers. Beijing has poured vast state funds into the EV sector, supporting the development and production of less polluting battery-powered vehicles. But a price war has left many startups bust as firms flood the domestic market with low-cost cars and trade-in schemes, offering huge discounts to customers to give up their old auto for a new one. Domestic criticism has mounted in recent months against intra-industry 'involution' — a popular tag used to describe the race to outcompete that ends up nowhere. A meeting of top officials in Beijing — chaired by Premier Li Qiang — called yesterday for tighter price monitoring and improving long-term regulation of competition in the sector, state news agency Xinhua said. Officials called for stronger order in the new energy vehicle market to 'curb irrational competition' and spur more healthy development, Xinhua said. 'It is necessary to... strengthen industry self-discipline' and help companies enhance their competitiveness through technological innovation, the agency quoted officials as saying. The China Association of Automobile Manufacturers, a top industry group, warned in May that 'disorderly' competition would exacerbate harmful rivalry and hurt growth. Analyst Bill Bishop wrote in his Sinocism newsletter that the wording of yseterday's readout could suggest Beijing will place 'price controls' on electric vehicles. 'The language on the new energy vehicle (NEV) industry was tough, in another sign that the government is going to intervene to rectify the 'irrational competition' in the industry,' he wrote. — AFP
France 24
7 days ago
- Automotive
- France 24
China moves to tame 'irrational competition' as EV price war persists
Beijing has poured vast state funds into the EV sector, supporting the development and production of less polluting battery-powered vehicles. But a price war has left many startups bust as firms flood the domestic market with low-cost cars and trade-in schemes, offering huge discounts to customers to give up their old auto for a new one. Domestic criticism has mounted in recent months against intra-industry "involution" -- a popular tag used to describe the race to outcompete that ends up nowhere. A meeting of top officials in Beijing -- chaired by Premier Li Qiang -- called Wednesday for tighter price monitoring and improving long-term regulation of competition in the sector, state news agency Xinhua said. Officials called for stronger order in the new energy vehicle market to "curb irrational competition" and spur more healthy development, Xinhua said. "It is necessary to... strengthen industry self-discipline" and help companies enhance their competitiveness through technological innovation, the agency quoted officials as saying. The China Association of Automobile Manufacturers, a top industry group, warned in May that "disorderly" competition would exacerbate harmful rivalry and hurt growth. Analyst Bill Bishop wrote in his Sinocism newsletter that the wording of Wednesday's readout could suggest Beijing will place "price controls" on electric vehicles. "The language on the new energy vehicle (NEV) industry was tough, in another sign that the government is going to intervene to rectify the 'irrational competition' in the industry," he wrote.
