Tesla, Ford electric trucks shake up EV stocks

Don’t miss: Tesla is looking at its best sales quarter ever

The price cuts come as “[Ford Chief Executive Jim Farley and other Ford executives] hear the footsteps of the Cybertruck and others such as [Rivian Automotive Inc.
RIVN,
-4.96%
] coming,” Wedbush analyst Dan Ives said in a note Monday.

Ford shares were poised for their lowest close in three weeks and the largest one-day percentage drop in six weeks. GM
GM,
-3.20%
stock, down 3%, was also looking at its biggest one-day percentage decline since late May.

Shares of Fisker Inc.
FSR,
+3.65%,
whose business model leans heavily on focusing on design and consumer interfaces, leaving manufacturing for third parties, rose more than 4% to its best in a week and snapping a two-day losing run.

Tesla kicks off third-quarter earnings season for auto makers and auto-parts suppliers. The EV maker is slated to report results on Wednesday after the bell.

See also: EV sales stall as, aside from Tesla and BYD, there’s a ‘step back from euphoria’

“A rollercoaster of a year for Tesla has seen a return to an $800-900 [billion] market cap on a mix of AI/Tech excitement and a stream of charging announcements from OEMs” preparing to use Tesla’s fast-charging network, analysts at ISI Evercore said in a note Monday.

The analysts said they expect “downward earnings revisions” going forward as Tesla could cut vehicle prices again, leading to a drop in revenue. The “negative tone” on Tesla in the near-term, however, is related to the stock, they said.

“They remain the EV leader in the US and part of a global duopoly” alongside China’s EV maker BYD CO. Ltd.
BYDDY,
-1.26%,
the analysts said. Until the launch of Tesla’s cheaper next-generation vehicle, however, the company “has exhausted its [total addressable market]” on its current models, they said.