Ford Motor slashed prices of its F-150 Lightning electric pickup truck by between $6,000 and nearly $10,000 on Monday, the latest sign of sluggish demand for electric vehicles.
The price cuts come as inventories of unsold EVs in dealer lots rise and follow several rounds of discounts by Tesla, the dominant EV seller.
Ford is lowering prices after temporarily halting production of the truck this year to upgrade the assembly line and increase production. By the fall, the company expects its Rouge Electric Vehicle Center near Detroit to be able to produce 150,000 Lightnings per year, tripling its current production capacity.
The competition in the field of electric vehicles is getting fiercer. Tesla said on Saturday it had begun production of its much-delayed Cybertruck pickup and that General Motors is expected to start shipping an electric version of the Chevrolet Silverado truck soon.
Ford began making the Lightning in spring 2022 and raised prices several times totaling about $20,000, citing the rising cost of raw materials for its batteries. At the time, demand far exceeded Ford’s production, and some dealers were charging thousands of dollars more than the company’s suggested retail price.
“Shortly after the launch of the F-150 Lightning, rapidly rising material costs, supply constraints and other factors drove up the cost of the EV truck for Ford and our customers,” said Marin Gjaja, Chief Customer Officer for the Electric Vehicle Division. from the car manufacturer. “We have continued to work in the background to improve accessibility to lower prices for our customers and reduce wait times.”
Ford said the Pro model of the F-150 Lightning has a list price of $49,995, a discount of $9,979. The XLT 312A model with an extended range battery was reduced from $8,879 to $69,995. The top-of-the-line extended-range Platinum model retails for $91,995, or $6,079 less than last week.
Due to price cuts, most Lightning models will cost less than $80,000, making them eligible for a $7,500 federal tax credit authorized by President Biden’s ambitious climate change bill, the Inflation Reduction Act.
To stimulate demand, Ford is also offering a $1,000 rebate to buyers who custom-order certain models through dealers before July 31. Ford’s credit division also offers 1.9 percent financing on 36-month loans.
This is an evolving story. Check back later for updates.