Volkswagen is making it clear it will not partake in the EV price war spurred by Tesla’s recent price cuts.
Is an EV price war on the horizon?
After Tesla slashed prices in China, the US, and the EU, across its lineup of electric vehicles, including a 20% discount on the Model Y, analysts predicted it would have a spillover effect on other BEV manufacturers.
We first saw it happen in China when EV maker Xpeng reduced prices by up to $5,300 on some of its most popular models shortly following the Tesla price cuts.
Although Tesla saw “unprecedented demand” as many stores hit new records following the cuts, it put essentially every other automaker (startups and legacy) in a spot to compete.
For example, Vinfast, a Vietnamese EV maker looking to establish a presence in the US, is offering a new special pricing promotion on its first model to make it to the states, the VF 8 City Edition, which will now start at $49,000 with an addition $3,000 direct discount off the MSRP.
Amid growing indications of an EV price war brewing, Ford also slashed prices on its ever-popular Mach-E electric SUV earlier this week. Marin Gjaja, chief customer officer for Ford’s EV unit, told Automotive News:
We have to compete. It’s a competitive marketplace, and it just got a lot more competitive because of what Tesla did. We’re not going to cede ground to anyone.
Volkswagen’s leader says the company will take a different route, sticking to its pricing strategy despite demand concerns.
Volkswagen ID.4 (source: VW)
VW not matching Tesla’s price cuts
According to VW CEO Oliver Blume’s recent statements, the automaker already has a pricing strategy in place and will stand by it.
Blume told German newspapers it would not partake in a price war with Tesla, stating:
We have a clear pricing strategy and are focusing on reliability. We trust in the strength of our products and brands.
VW joins General Motors, which also announced it would not offer EV price cuts during its latest earnings release.
Instead of price cuts, VW will aim to achieve profitable growth to become a global EV leader. The automaker delivered around 330,000 ID.4 models in 2022, up 23%, and over 580,000 ID models since launching in 2020.
Volkswagen Group recently brought back former Bentley and Audi designer Andreas Mindt to help lead the company’s EV efforts and bring the company into the modern age.
Electrek’s Take
Tesla’s price cuts are clearly having a profound effect on the EV market. As the EV leader continues to shatter expectations while continuously breaking electric vehicle delivery records, it’s making it difficult for other automakers to compete, especially with lower prices.
Tesla is lightyears ahead in terms of production capabilities because of its focus on zero-emissions EVs from the beginning; other auto manufacturers are now looking to catch up.
While Ford is cutting prices to compete, GM and VW are standing by their pricing strategies. We’ll see how the pricing battle plays out over the next few months.
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Genesis is preparing to shake things up with its most luxurious SUV yet, the GV90. Thanks to a new patent filing, we are getting a detailed look at how its Rolls-Royce-style coach doors will work.
New patent reveals Genesis GV90 coach door system
When Genesis first unveiled the full-size SUV at the NY Auto Show last March, it wasn’t the stunning design or advanced tech that caught everyone’s attention. It was the coach doors.
Although we were worried it wouldn’t make it to the production model, like many concepts, the Genesis GV90 will be offered with coach doors.
The ultra-luxe electric SUV was first caught with coach doors earlier this year on a car carrier in South Korea. Just last month, the GV90 was spotted in California with a hinge at the rear to open the coach doors.
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After several new patents were filed with the United States Patent and Trademark Office for new door latching devices, we are getting a sneak peek at how they are expected to work.
The patents, titled “Cinching Device For Door Latches in Vehicle,” and “Door Latch Device for Vehicles,” give a pretty detailed explanation of how the Genesis GV90’s coach doors will operate. The “Door Latch Device” uses a door striker on the lower side of the door, which is opened or closed by a hinge unit.
Unlike traditional doors, which use the B-pillar for support, the device is attached directly to the door itself, allowing for hinge-like movement.
The cinching device works in a similar way. It’s also attached to the door and part of the vehicle. However, unlike most of its kind, Genesis found a way to use a single cinching device to control multiple units. Again, the device is used for B-pillarless doors that swing open.
Genesis already said that B-pillarless coach doors are now feasible in production vehicles. The patent reveals a glimpse into how the luxury automaker could make it a reality.
Genesis Neolun ultra-luxury electric SUV concept (Source: Genesis)
Although the Genesis GV90 is expected to be offered with coach doors, they will likely not be standard. Other variants, with traditional door handles, have also been spotted testing in the US and South Korea.
Genesis is expected to launch the GV90 in mid-2026. It will be built at Hyundai’s Ulsan plant in South Korea. The flagship Genesis SUV is scheduled to debut on Hyundai’s new eM platform, which the company said will “provide 50% improvement in driving range.” It will also be loaded with the latest technology, software, connectivity, and Level 3 or higher autonomous driving capabilities.
In the Electrek Podcast, we discuss the most popular news in the world of sustainable transport and energy. In this week’s episode, we discuss the launch of the Tesla Model YL, more Tesla probes and lawsuits, new Nissan Leaf pricing, and more.
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The new electric Mercedes CLA (Source: Mercedes-Benz)
July EV sales looked strong on the surface, but the looming impact of tariffs and the end of EV tax credits reveal a more complicated picture, according to Cars.com’s new Industry Insights report.
New-vehicle sales jumped 6.6% year-over-year, even as dealer inventory fell for the first time since 2022. Much of the spike came from a “buy now” mindset as shoppers raced to lock in deals before tariffs and policy changes drive prices higher. For EVs in particular, the looming end of the federal $7,500 tax credit on September 30 added another layer of urgency.
EV inventory growth is slowing – for now
Shoppers technically have more EV options than ever, with 75 models on the market – a 27% jump from last year. But new EV inventory growth has slowed to just 9% year-over-year, the lowest since before the Inflation Reduction Act revived federal incentives. Analysts expect another wave of buying before the tax credit vanishes, but after that, higher prices could cool demand, especially with most new EVs still priced in the premium-to-luxury bracket.
Tariffs set to push prices higher
Automakers absorbed an estimated $12 billion in tariff costs in the second quarter alone to keep sticker prices steady. That’s not sustainable, and once those costs flow into 2026 models, EV buyers could be facing thousands more on the same car.
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At current 25% tariff levels, the average new-vehicle price could jump from $48,000 to $54,400 – about $6,400 more. Even if trade deals trim tariffs to 15%, buyers would still see increases of more than $4,000. That’s a huge gap compared to household incomes, which grew only 1% last year.
The used EV market is heating up
While new EV prices are bracing for impact, the used EV market is gaining momentum. Inventory is up 33% year-over-year, while average prices dipped 2% to $36,000. Affordable used EVs under $25,000 – including the Tesla Model 3, Nissan Leaf, and Chevy Bolt EV – are selling 20% faster than average. Many also qualify for the $4,000 used-EV tax credit, which, like the new EV credit, ends September 30.
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