Shares of Ford (NYSE:F) are down today after the company announced it will slash the prices of its Mustang Mach-E in order to mirror Tesla’s (NASDAQ:TSLA) decision. Tesla’s price cuts now put other EV makers in a more difficult position as none of them come close to matching its gross profit margin.
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As a result, the overall EV market is down across the board today, with the iShares Self-driving EV & Tech ETF (IDRV) down 1.5% at the time of writing. Investors were already worried about the auto sector before this price war was initiated due to the deteriorating macroeconomic backdrop. With Tesla now flexing its muscles, profitability will likely become much more difficult. Other ETFs that are related to EVs are as follows: