Ford Slashes Prices of F-150 Lightning Trucks in EV Price War with Tesla

Ford Slashes Prices of F-150 Lightning Trucks in Electric Vehicle Market Showdown

July 17 (Reuters) – Ford Motor has entered into a fierce price war in the electric-vehicle industry by significantly reducing the prices of its F-150 Lightning trucks. The move comes as Ford aims to increase its market share in the electric vehicle market, which is currently dominated by Tesla. The base model of the F-150 Lightning truck saw a 17% price cut, resulting in a drop in Ford’s stock by about 5% in morning trade. General Motors and EV maker Rivian also experienced a decline in their stocks as a result of Ford’s aggressive pricing strategy.

Ford claims that the reduction in prices is made possible by improvements in scale and the decline in battery raw material costs. The automaker had previously raised prices for the Lightning trucks earlier this year. This price cut follows a price war initiated by Tesla a few months ago, which drove legacy automakers to accumulate electric vehicles on dealer lots as sales began to slow down. Ford’s EV sales for the quarter ending in June fell 2.8%.

To meet the growing demand for the F-150 Lightning, Ford has temporarily closed its Rouge Electric Vehicle Center in Michigan. The closure is to allow for final upgrades to the facility, with the ultimate goal of tripling the annual production capacity to 150,000 trucks, starting in the fall.

One of the factors that had contributed to the increase in EV prices was the rise in battery raw material costs. However, prices for crucial materials like cobalt and lithium have dropped, leading analysts to expect further cost reductions in the second half of the year. Ford has taken steps to address this challenge by fortifying its sourcing options and securing new supply deals for battery-grade lithium.

Ford has implemented price reductions across all variants of the F-150 Lightning. The base model, the Pro variant, now has a suggested retail price of $49,995, which is a 17% decrease from its previous price. The higher-end Platinum model will also be 6.2% cheaper, priced at $91,995.

In conclusion, Ford’s move to slash prices for its F-150 Lightning trucks intensifies the price war in the electric-vehicle market. By reducing prices and making strategic upgrades to production facilities, Ford aims to challenge Tesla’s dominance and gain a larger market share. Furthermore, dropping battery raw material costs contribute to this price reduction trend. With these price cuts, Ford hopes to make electric vehicles more accessible and affordable to a wider range of consumers.