Mark Fields, the former CEO of Ford Motor Company (NYSE:F), recently shared his insights on the implications of decreasing electric vehicle (EV) prices for both the new and used car markets.
What Happened: During CNBC’s “Last Call” on Monday, Fields highlighted the significance of falling EV prices. “As these prices come down, you take away one of the big inhibitors that are holding back the new EV market,” he said.
“This is all about how do consumers feel about what their vehicle is going to be worth going forward. There are real issues around that.”
Fields explained factors like increased competition, higher interest rates, and demand slowdowns will lead to a reduction in EV prices in the new vehicles market which, in turn, will lead to “an acceleration of costs going down for EVs in the used vehicles market.”
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Why It Matters: The former Ford CEO’s comments come in the wake of several recent developments in the EV market. In April, Ford reiterated its commitment to cutting costs in its EV segment to counter growing losses and withstand the ongoing price war.
Similarly, Tesla has been trying to address grievances from European leasing companies following repeated retail price cuts and slow service. These price cuts were intended to boost sales amid declining global demand for EVs and rising competition from Chinese EV makers.
Furthermore, Tesla’s CEOElon Musk recently hinted at the possibility of a Tesla Model Y priced under $20,000, stirring mixed reactions in the industry.
Amid these developments, Chinese EV makers have been warned that their ongoing price wars in overseas markets could potentially jeopardize product quality and brand reputation.
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This is all about how do consumers feel about what their vehicle
This story was generated using Benzinga Neuro and edited by Pooja Rajkumari
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