The automotive industry is currently experiencing a shift towards electric vehicles, and Ford is one of the brands leading the way in this transition. Ford’s electric F-150 Lightning pickup truck was introduced in 2021, and the company has been working to improve accessibility and affordability to help to lower prices for its customers.
(Image credit: Ford)
In a recent announcement, Ford revealed that it would be cutting prices on its F-150 Lightning trucks by almost $10,000, making it more competitive with other electric vehicle options on the market.
Ford’s Efforts to Boost Production and Lower Costs for Battery Minerals Have Paid Off
Ford has made significant investments in electric vehicle production, with CEO Jim Farley making it a key priority for the company this year. However, the effort to boost production has not been a smooth one. Ford has faced challenges with supply constraints and high prices for battery minerals, which have led to several price increases for the F-150 Lightning since its debut. Despite these challenges, Ford has continued to work on improving production efficiency and lowering costs for battery minerals.
According to Ford officials, access to raw materials for the battery has improved, and the company has upgraded its suburban Detroit factory where the truck is manufactured, enabling it to drop prices.
The company has worked to increase production of the truck in recent months, with factory upgrades that are expected to triple its output set to be in place by fall. Once the F-150 Lightning’s factory in Dearborn, Michigan completes a final round of upgrades, workers there will be able to produce 150,000 trucks a year.
Ford Cuts Prices for its F-150 Lightning Trucks
Ford’s announcement of price cuts on its F-150 Lightning trucks has been received positively by consumers and industry experts alike. The company said that prices for some of the least expensive versions of the Lighting would fall by nearly $10,000.
Prices for all versions, including the top-line Platinum trim, will drop by at least $6,000 from levels set in March.
The new prices place the cheapest electric F-150 almost in line with the average price of $47,490 for all new cars, which is an important affordability milestone as legacy automakers work to move away from fossil fuels. The price drops make the F-150 Lightning more competitive with other electric vehicle options on the market, such as Tesla’s Cybertruck and Rivian’s R1T electric pickup, which start at $50,000 and $73,000, respectively.
Ford’s F-150 Lightning Pro Trim Receives the Most Significant Price Drop
Ford’s price cuts on its F-150 Lightning trucks vary depending on the trim level. The most significant price drop is for the Pro trim, which is the least expensive model of the F-150 Lightning. The Pro trim now costs $49,995, marking a $9,979 price cut from the most recent price. The Platinum Extended, the priciest version, now costs $91,995, a $6,079 drop. The cost of other models (including the price drops) are:
- The XLT 311A is $54,995 ($9,479)
- The XLT 312A is $59,995 ($8,479)
- The XLT 312A Extended Range is $69,995 ($8,879)
- The Lariat 510A is $69,995 ($6,979)
- The Lariat Extended Range is $77,495 ($8,479)
These prices do not factor in federal tax credits of up to $7,500 for EV buyers.
Ford’s Efforts to Compete with Tesla and Rivian
Ford’s decision to cut prices on its F-150 Lightning trucks is an aggressive attempt to gain market share from rivals Tesla and Rivian. The F-150 Lightning is seen as a particular threat to Tesla, not only because of the Cybertruck’s production delays, but also because its gasoline-powered predecessor has been Ford’s most popular offering and remains the top-selling U.S. vehicle in 2023.
Gene Munster, an analyst with Deepwater Asset Management, said the price drop is also an indication of flagging demand for expensive EVs. Ford sold just about 15,000 Lightnings last year, he said, far short of what it had been shooting for.
The company wants to be able to produce 150,000 a year starting this fall.
Wedbush senior analyst Dan Ives said it’s an “eye-popping move” for Ford to cut prices this much, this early. It indicates a price war among EV manufacturers, he said, and shows that Ford is trying to increase its sales volume even at the expense of profit.
Ford’s price cuts on its F-150 Lightning trucks are a significant move for the company as it works to compete with other electric vehicle manufacturers. The F-150 Lightning has been a key priority for CEO Jim Farley this year, and the company has made significant investments in electric vehicle production. The recent price cuts are a reflection of Ford’s efforts to increase production efficiency and lower costs for battery minerals, making the F-150 Lightning more affordable and accessible for consumers. With these efforts, the F-150 Lightning is poised to become a major player in the electric vehicle market, competing with other popular options such as Tesla’s Cybertruck and Rivian’s R1T electric pickup.