Fisker Inc. (NYSE:FSR) was a notable decliner among EV startups on Friday after Tesla (TSLA) trimmed prices and put added pressure on as-of-yet unprofitable competitors.

Shares of the California-based automaker fell 9.69% on Friday, leading declines for EV startups including Rivian Automotive (RIVN), Lucid Group (LCID), Mullen Automotive (MULN), and more. The declines were sparked by Tesla’s “drastic” price cuts that set the standard for the industry, according to Morgan Stanley analyst Adam Jonas. He told clients that industry is now in a “race to the bottom.”

“As EVs resume a deflationary path, investors should expect the industry’s price leader to continue to offer a better product at a lower price,” Jonas wrote in a note on Friday. “Tesla is in a position to drive industry EV prices significantly lower.”

Read more on analyst reactions to Tesla’s pricing actions.