Recession EV price wars have started, expected another 15-20% in cuts - Chowdhry

Global Equities Research analyst Trip Chowdhry weighed in on news Ford (NYSE: F) cut its Mach-E price between $600 to $5,900, which follows cuts from Tesla (NASDAQ: TSLA) and proclaims the "recession EV price wars have started" and expects another 15-20% fall in EV prices.

Chowdhry said, "EV Customer is highly price sensitive," and prices in the current recession must be adjusted accordingly.

He claims Tesla's S/X price points will need to be between $70,000 and $85,000 - anything above this will be priced out of the market.

Further, he said Tesla's model 3/Y price points will need to be between $35,000 and $50,000 - anything above this will be priced out of the market.

Currently, Tesla's competition is priced out of the market, Chowdhry said, and if they wish to compete, they need to compete at the price points noted above.

On Tesla's FSD, the analyst said at $15,000, it is priced out of the market. He thinks the most Tesla can charge for FSD is $2,500.

In the current recession, Tesla's competition will likely go out of business, Chowdhry concludes. They just don't have the scale and cost structure of Tesla.

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