Ford’s slashing the price of its electric pickup as EVs lose premium status
U-turn… Ford debuted its F-150 Lightning two years ago, advertising a modest $40K price tag for the e-pickup. But after supply snags, inflation, and a devastating fire curbed production, it hiked the starting price to $60K, forcing some customers to cancel their orders. Now Ford’s slashing prices as EV competition revs up.
New tag: The cuts range from $6K to $10K across the 2023 Lightning lineup. Trucks ordered (but not delivered) will get the difference refunded.
New competition: On Saturday Tesla finally produced its first Cybertruck, four years after unveiling it (still TBD when it goes on sale).
Electric overload… Global EV sales have tripled since 2020 as top players like Tesla, Ford, and GM spend billions ramping up production. But inventories are starting to outpace EV demand, which this year has slowed. US car dealers have 92K EVs sitting on their lots (up 3X from a year ago). Meanwhile, 90+ new models are set to hit the market by ’26. With more e-options and bloated inventories, carmakers are lowering prices to stay in the fast lane.
EVs are losing their premium status… The EV-exclusivity era is fading as cheaper models are mass-produced. With competition heating up, EV makers can’t lean on premium prices to pad their profits. Tesla reported record deliveries for its latest quarter, after slashing its Model 3 and Model Y prices by as much as 20% in January. And while price cuts fuel demand, they can weigh on profits too. Following its discount announcement yesterday, Ford shares dropped nearly 6%.