The electric vehicle (EV) market continues to face an imbalance between supply and demand, resulting in lower prices and falling margins for automakers. Over the weekend, (NASDAQ: TSLA) and BYD continued their price war with Tesla giving incentives of nearly $5,000 to buyers through the end of March.

Investors didn't react kindly and it wasn't just Tesla that was impacted, although shares were down as much as 7.9% in trading on Monday. Shares of Rivian Automotive (NASDAQ: RIVN) also dropped 7% and Lucid Group (NASDAQ: LCID) fell 6.9%. At 2 p.m. ET, the three EV makers were down 7.5%, 4.5%, and 6.8% respectively.

Image source: Getty Images.

Continue reading

Source Fool.com