Core Insights - The ongoing price war in the European electric vehicle market is primarily driven by Tesla, not Chinese brands, as it seeks to counter a 33% decline in sales this year [1][4] - BMW and Mercedes-Benz have had to align the average selling prices of their electric vehicles with those of their gasoline counterparts, which is expected to erode profit margins and add pressure to their already weak Q3 performance [1] - Audi remains an exception in the market, maintaining higher price levels for its products, while mass-market electric vehicles still command a price premium of around 30% [1] Price Dynamics - The average net selling price of BMW and Mercedes-Benz electric vehicles has reached parity with gasoline vehicles, influenced by Tesla's aggressive pricing strategy [4] - In July, the average selling price of high-end electric vehicles decreased significantly, nearing that of gasoline vehicles; for instance, the BMW iX1 starts at £43,305, compared to £45,010 for the gasoline version X1 23i [4] - Tesla's Model 3 has seen its monthly rental price in the UK drop by over 50% in the past year, now standing at £249 [4]