Tesla just started an EV price war that it will likely win
Tesla has just started what could become a major EV price war, and it could change the landscape as the automaker is in a great position to win that war.
The number one thing I hear from people that are interested in buying an electric car is that the price is high.
I always counter it by asking them how much they spend on gas and with those savings, the cost of ownership is often cheaper than a gasoline vehicle. However, a higher sticker price remains an important psychological barrier for many buyers even after considering the total cost of ownership.
On top of that, the average price of electric vehicles has been steadily increasing over the last two years thanks to high demand, supply chain issues, and general inflation.
But now things are starting to get interesting for the first time on the EV pricing front.
Tesla has implemented some significant price cuts across its entire lineup and in all markets. It almost reversed the price increases over the last few years entirely.
As we recently reported, the price drop has been working in the US where it also arrives at the same time as the new $7,500 tax credit for electric vehicles.
Tesla’s sales are surging following the price drop and now we are seeing other automakers following in the price drop. For example, Xpeng saw its sales drop during the week following Tesla’s price drop, and the company has now implemented important price drops, too.
Many experts are seeing this as the first few steps into the first ever EV price war.
Tesla is in a perfect position to win the EV price war
In a price war, it’s all about your ability to absorb price reductions and on that front, you can’t deny Tesla’s lead.
For years now, the automaker has been enjoying industry-leading gross margins and net profits.
Here, Reuters put a chart together showing how Tesla’s gross margin and net profit compare to rivals in the auto industry:
That chart is impressive, but it doesn’t even tell the whole story.
Aside from companies like Nio and Xpeng, all the gross margins and net profits from the other companies also come from non-all-electric vehicles – meaning hybrids, PHEVs and gas-powered cars.
For companies like GM, which comes in second to Tesla in net profits, it is believed that its gasoline-powered vehicles have much higher margins than its electric vehicles.
Electrek’s Take
I’ve always said that I believe some big companies will fall during the electric revolution. I’m not saying that’s happening now, but if an EV price war heats up, I think we could see it happen.
I think Tesla still has a few wild cards that are questionable – Elon Musk is at the top of that list – but it is definitely Tesla’s war to lose.
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Tesla’s retro-futuristic diner with Superchargers and giant movie screens is ready to open, and I have to admit, it looks pretty sick.
This project has been in the works for a long time.
In 2018, Elon Musk said that Tesla planned to open an “old school drive-in, roller skates & rock restaurant at one of the new Tesla Supercharger locations in Los Angeles.” It was yet another “Is he joking?” kind of Elon Musk idea, but he wasn’t kidding.
A few months later, Tesla applied for building permits for “a restaurant and Supercharger station” at a location in Santa Monica. However, the project stalled for a long time, apparently due to local regulations.
Nevertheless, Tesla still moved forward with a Supercharger at the location, but it had to move the diner project to Hollywood. In 2022, Tesla filed the construction plans with the city, giving us the first look at what the automaker intends to build.
In 2023, the automaker broke ground on the site of the diner.
7 years after being originally announced, the project appears now ready to open:
Musk said that he ate at the diner last night and claimed that it is “one of the coolest spots in LA.” He didn’t say when it will open, but Tesla vehicles have been spotted at Supercharger and people appear to be testing the dinning experience inside.
A Tesla Optimus Robot can be seen inside the diner on a test rack. It looks like Tesla might use one for some tasks inside the diner.
Earlier this year, Tesla integrated the diner into its mobile app – hinting at some interaction through the app – possibly ordering from it.
Electrek’s Take
I think it looks pretty cool. I am a fan of the design and concept.
However, considering the state of the Tesla community, I don’t think I’d like the vibes. That said, it looks like Tesla isn’t prominently pushing its branding on the diner.
You can come and charge there, but it looks like Tesla is also aiming to get a wider clientele just for dining.
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Hyundai’s electric minivan is finally out in the open. The Staria EV was caught without camo near Hyundai’s R&D center in Korea, giving us a closer look at the electric minivan undisguised.
Hyundai’s electric minivan drops camo ahead of debut
The Staria arrived in 2021 as the successor to the Starex, Hyundai’s multi-purpose vehicle (MPV). Although the Staria has received several updates throughout the years, 2026 will be its biggest by far.
Hyundai will launch the Staria EV, its first electric minivan. Like the current model, the 2026 Staria will be available in several different configurations, including cargo, passenger, and even a camper version.
We’ve seen the Staria EV out in public a few times already. Last month, we got a glimpse of it while driving on public roads in Korea.
Despite the camouflage, new EV-like design elements were visible, including updated LED headlights and a full-length light bar. Although it’s still unclear, the electric version appears to be roughly the same size as the current Staria from the side, but slightly wider from the front.
New images posted on the South Korean forum Clien reveal a test car, expected to be Hyundai’s Staria electric minivan, without camo.
Like most Hyundai test cars, the prototype has a black front and a grey body. It still features a similar look to other prototypes we’ve seen, but you can clearly see the new facelift.
Earlier this year, a Staria EV was spotted in a parking lot in Korea, featuring a similar look. The electric version is nearly identical to the Staria Lounge, but with an added charge port and closed-off grille.
The Hyundai Staria EV is expected to make its global debut later this year. Technical details have yet to be revealed, but it’s expected to feature either a 76 kWh or 84 kWh battery, providing a range of around 350 km (217 miles) to 400 km (249 miles).
Hyundai’s electric SUV arrives after Kia introduced its first electric van, the PV5, which launched in Europe and Korea earlier this year.
In Europe, the Kia Passenger PV5 model is available with two battery pack options: 51.5 kWh and 71.2 kWh, providing WLTP ranges of 179 miles and 249 miles, respectively. The Cargo version has a WLTP range of 181 miles or 247 miles.
Source: TheKoreanCarBlog, Clien
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