Ford on Monday confirmed it is slashing prices for its F-150 Lightning truck due to lower battery costs.
The Detroit-based automaker, which had raised Lightning prices earlier this year, said it was able to cut prices following improvements in scale and battery raw material costs. It came after Ford’s EV sales dropped 2.8 percent earlier this year, but the company said it was able to cut prices following improvements in scale and battery raw material costs.
“Shortly after launching 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 of the Ford Model e, in confirming the price cut. “We’ve continued to work in the background to improve accessibility and affordability.”
The move comes amid a price war started by Tesla a few months ago, which has seen EVs of legacy automakers piling up at dealers as sales slow. Ford also said it has temporarily closed its Rouge Electric Vehicle Center in Michigan to complete final plant upgrades as it aims to triple the facility’s annual run rate to 150,000 Lightning trucks, beginning this fall.
“The Ford Lightning is a good vehicle, just somewhat expensive, especially given the high interest rates these days for any kind of loan,” Tesla CEO Elon Musk said in a Twitter post on Monday.
Last week, Tesla said it built its first Cybertruck at its plant in Austin, Texas, after two years of delays. The company is expected to announce prices during an event later this quarter.
Battery raw material prices have been one of the factors that pushed EV prices up. But prices of cobalt and lithium, crucial for EV batteries, have declined.
Ford has also strengthened its sourcing options and unveiled new supply deals for battery-grade lithium earlier this year. The base Pro variant of Lightning now carries a suggested retail price of $49,995, compared with its prior price of $59,974, while the higher-end Platinum model will cost about 6.2 percent less, at $91,995.
Meanwhile, some commentators alleged that the Ford Lightning performs poorly at pulling or carrying cargo.
Mr. Hoover also claimed that his experience with the Lightning was a “complete and total disaster” because of the range of the towing capacity. “You would be stopping every hour to recharge, which would take about 45 minutes a pop,” he added. “And that is absolutely not practical.”
Ford is slated to report its second-quarter earnings after the markets close on July 27.
