The electric vehicle (EV) industry is changing quickly. Just a few years ago, Tesla (NASDAQ: TSLA) was essentially the only major player in the U.S. and rode that first-mover advantage to generate operating margins approaching 20%.

But these days, Tesla is competing in EVs against legacy automakers like GM and Ford, European carmakers like Volkswagen and Polestar, as well as upstarts like Rivian Automotive (NASDAQ: RIVN) and Lucid Group (NASDAQ: LCID).

In response to the new wave of competition, Tesla has announced multiple price cuts in recent months, signaling that the company would rather gain market share than generate higher profits. And CEO Elon Musk suggested that the company could even generate zero on car sales and make it up by selling services like full self-driving to owners.

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Source Fool.com