To Lower Or Not? EV Pricing Dilemma Hampers Ford's Profitability, Warns Analyst

Global Autos Analyst Tom Narayan expressed concerns over the decreasing prices of electric vehicles (EVs), which could potentially hinder profitability for automakers.

What Happened: Narayan, during CNBC’s “Last Call” on Wednesday, pointed out that the pricing for EVs seems to be on a downward trend. This could pose a significant challenge for automakers like Ford Motor Company F in achieving profitability in the EV sector.

He stated, "If pricing keeps coming down it'll be tough to get there."

See Also: Tesla Q1 Earnings Preview: Is EV Giant No Longer A ‘Growth Stock?’ Analysts Cautious, Want Answers About Robotaxis, Model 2

Why It Matters: Narayan’s tweet comes in the wake of Ford’s CFO, John Lawler, expressing concerns over the rapid decrease in revenue due to EV price cuts. Lawler emphasized the company’s commitment to cost-cutting in its EV segment to counter the losses.

Earlier, Tesla Inc. TSLA had also announced significant price cuts in all trim levels of its electric vehicles in China, following a round of price cuts in the U.S.

Stellantis NV STLA CEO Carlos Tavares had previously cautioned against price reductions that might risk profitability and potentially make car manufacturers acquisition targets.

Price Action: As of close on Wednesday, Ford shares closed at $13.26, Tesla at $160.55, and Stellantis at $24.95, according to Benzinga Pro.

Read Next: Elon Musk Reacts As ARK Invest Analyst Says ‘It’s Going To Be Very Hard’ For Tesla Rivals ‘To Catch Up To  Them’ In Pricing: ‘Accurate’

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