Ceasefire of the EV makers?

After a year of brutal price wars first ignited by $Tesla Motors(TSLA)$   that have witnessed many casualties and burning its own pockets over narrowing profit margins, the EV industry leader is reportedly planning to raise prices across all its major markets from next month in an effort to call for a ceasefire and rebuild its margins. In fact, this is not surprising to me as Elon Musk has previously warned that Tesla was reaching "the natural limit of cost down" with its existing lineup, so that it would be challenging to trim prices further to boost demands for its EVs without detrimental impacts to its financials.

The ceasefire will be good news for the EV market that has been battered by the price wars as the EV players attempted to undercut one another's selling price in order to snatch or defend their market shares, leading to only lose-lose for everyone.

Hopefully, this will reverse the narrowing profit margins and help to improve profitability for Tesla and the Chinese EV makers especially the Chinese EV startup trio $NIO-SW(09866)$  , $XPENG-W(09868)$  and $LI AUTO-W(02015)$  as well as the latest entrant $XIAOMI-W(01810)$ , that are more vulnerable to price wars unlike their dominant peer BYD with significantly much larger customer base and deeper pockets.

I hope that this will be the start of a reversal of fortune for the EV makers and help them to weather the softening EV market demands by focusing on development of better and safer EVs, enriching their functions and features and broadening the charging infrastructure, so as to expand the EV market size by attracting more drivers to switch over from conventional ICE vehicles.

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