Part 8/11:
Morgan Stanley emphasizes that price cuts in EVs are likely to become the norm, not the exception, as supply and demand continue to shift. Tesla’s advantage stems from its cost leadership and product scalability, enabling it to slash prices without threatening profitability, thus suffocating competitors' ability to sustain higher prices.
For investors, this environment presents opportunities: lower margins and falling stocks create potential entry points, particularly in Tesla, which continues to set industry standards. Meanwhile, startups and traditional automakers struggle with restructuring and consolidation as they attempt to catch up.