Analysis-Tesla's price cuts promise more pain for money-losing U.S. EV startups


FILE PHOTO: A Rivian R1T pickup, the Amazon-backed electric vehicle (EV) maker, is driven through Times Square during the company?s IPO in New York City, U.S., November 10, 2021. REUTERS/Brendan McDermid/File Photo

(Reuters) - A price war in electric vehicles started by market leader Tesla Inc has made it much more difficult for money-losing U.S. startups like Rivian Automotive Inc and Lucid Group Inc to grab share in an industry competing for shrinking consumer wallets.

Tesla's move last week to slash prices globally on its EVs by as much as 20% could draw new buyers to electric cars in the industry, but also will force other automakers to respond with lower prices or risk getting left behind, analysts and investors said.

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