Tesla Continues To Lower Prices Of Electric Cars, This Is Stellantis' Response

Stellantis has just launched the Large STLA platform which can make EVs reach 800 km. (Doc. Stellantis)

AKARTA - Stellantis responded to Tesla's policy of decreasing the price of electric cars.

The company stated that it would not follow similar steps. This statement was made by Stellantis CEO Carlos Tavares, after launching Stellantis' second EV platform on Friday. The platform will support the first electric model of Jeep and Dodge brands in the United States.

"If you cut the price without considering the costs that have been incurred, you will face a significant risk of loss," Tavares said, as reported by Reuters and quoted by Electrek, Monday, January 22.

Furthermore, he stated that price cuts could set several automakers on acquisition targets, while Stellantis is believed to be better protected from price pressures that could cause harm.

"I know a company that drastically lowers prices and has experienced a significant decline in profitability," he added.

Although Stellantis is one of the biggest electric vehicle sellers in Europe, the company recently launched its first all-electric model in the United States this year. Ram, Stellantis' first electric vehicle, comes in the form of the Ram ProMaster electric van. The model will compete with Ford E-Transit and commercial electric van Rivian.

Furthermore, Stellantis will also release an electric Wagoneer S, a tough off-road SUV scheduled for sale this fall. This electric SUV will have 600 hp of power with an impressive distance of up to 400 miles or about 643 km.