Chinese EVs still cheaper than Teslas in US after tariff hike

> Shares in General Motors Co. and Ford Motor Co. tumbled after Morgan Stanley analyst Adam Jonas warned that cars are too expensive for US consumers and a price war in China will hurt the bottom line there.

> Automakers face challenges in both markets. Even with interest rates falling the average monthly vehicle payment in the US exceeds $700 a month, which is keeping consumers from showrooms. Add in market share gains from Japanese and Korean automakers, and Jonas sees little upside.

> Jonas estimates Chinese automakers are producing nearly 9 million units more than it sells locally, a fact that is squeezing prices and making the market unprofitable for all but a few players.

> Car affordability in the US is “very stretched,” he wrote in a note to clients. “Industry structure has not changed. Inventory is at pre-Covid levels. Japanese, Korean and EV names are gaining share. Others are squeezed. US has all the burden with falling prices, falling mix, rising costs and lower share.”