At least one automaker will avoid cutting EV prices to compete with Tesla. Stellantis CEO Carlos Tavares took aim at Tesla, saying EV price cuts could lead to a “bloodbath,” and the brand is avoiding a race to the bottom.
Stellantis will avoid EV price cuts, takes aim at Tesla
After unveiling Stellantis’ second EV platform Friday, which will underpin the first Jeep and Dodge electric models in the US, Tavares said the brand must avoid price cuts that could pressure profits.
It could even lead to several automakers being takeover targets, Tavares said. The group’s leader claims the brand was better protected from pricing pressure that could put some rivals “in trouble” with widening losses.
“If you go and cut pricing disregarding the reality of your costs, you will have a bloodbath,” Tavares warned Friday, according to Reuters.
He added, “I know a company that has brutally cut pricing and their profitability has brutally collapsed,” taking aim at Tesla.
Tesla slashed prices throughout 2023, dropping prices on its best-selling Model Y in Europe days ago. The news comes after Tesla lowered prices in China earlier this month, the largest EV market globally.
Stellantis knows a thing or two about merging companies after it was formed through a Fiat Chrysler and PSA Group business combination in 2021.
Although Stellantis is one of the largest EV sellers in Europe, the automaker is launching its first all-electric models in the US this year.
New EVs launching in the US
Ram launched its first EV, the Ram ProMaster electric van, that will compete with Ford’s E-Transit and Rivian’s commercial electric van.
Jeep is next up. The rugged off-road brand’s electric Wagoneer S is going on sale this fall. The electic SUV will feature 600 horsepower and up to 400 miles range. It can also sprint from 0 to 60 mph in 3.5 secs.
Jeep is also launching the Recon, inspired by its iconic Wrangler. The new “rugged and fully capable electric SUV” will be able to cross the Rubicon Trail.
To keep the Wrangler’s spirit alive, the Recon will include features like removable doors and windows.
Dodge’s first EV is also set to hit the market later this year. It will be an all-electric version of its iconic Charger.
The new Dodge Charger EV was spotted testing earlier this week near Chrysler’s HQ suggesting the EV is coming soon. Although Stellantis has yet to confirm specs, rumors suggest the top variant could feature around 900 horsepower.
It’s easy for Stellantis to take a jab at Tesla over price cuts when it doesn’t sell any EVs in the US yet.
With the new EVs launching, Stellantis is set to double its all-electric lineup. It will be interesting to see how pricing impacts the first Jeep, Dodge, and Ram EVs as they roll out.
Tavares comments come after Ford announced plans to cut F-150 Lightning production Friday, citing “slower than expected” demand.
Although Ford and GM have slowed EV output, overseas rivals like Volvo and Hyundai are doubling down.
Both automakers have unique EV offerings in key segments. With Volvo launching the EX30, starting at $35,000, CEO Jim Rowan expects “tremendous growth” for its EVs.
FTC: We use income earning auto affiliate links. More.