Ford Motor Co. F, grappling with its electric vehicle strategy, has reportedly adjusted prices for its F-150 Lightning EV pickup truck.
What Happened: Ford increased prices for some 2024 model year F-150 Lightning EV pickup trucks by $2,000 to $10,000. Simultaneously, the automaker reduced prices for premium trims by up to $10,000, as reported by Detroit Free Press on Wednesday.
The media outlet cited communication from Ford to its dealers and confirmed the price adjustments with the company. Prices for the 2023 model year F-150 Lightning reportedly remain unchanged.
Benzinga reached out to Ford for clarification on the alleged price changes.
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The price cuts for the Platinum trims may be attributed to their ineligibility for the federal tax subsidy that came into effect on Monday.
In addition to the manufacturer’s suggested retail prices, customers may incur destination and delivery fees ranging from $1,995 to $2,095, the report noted.
The XLT 321A and the Lariat variant with an estimated EPA range of 240 miles were reportedly discontinued, with the introduction of a new variant, the Flash, boasting an estimated EPA range of 320 miles and priced at $73,495.
“Demand for F-150 Lightning continues to grow. The EV segment remains dynamic, and we’ll continue to make adjustments,” said a company spokesperson, as per the report, which mentioned that dealer lots currently house 2023 models, with the arrival of 2024 models pending.
Why It’s Important: These price adjustments coincide with the entry of Tesla, Inc.‘s TSLA Cybertruck into the market. The high-end Cyber Beast and all-wheel-drive versions are priced at $99,000 and $80,000, respectively, while the single-motor rear-wheel-drive version, available in 2025, has a $61,000 price tag.
Tesla indicated on its website that the Cybertruck will qualify for the $7,500 federal tax subsidy later this year. Analysts anticipate a gradual increase in production from Tesla, with minimal growth contribution until at least 2025.
Last year, reports surfaced that Ford planned to reduce weekly production rates of the F-150 Lightning by half starting in 2024 due to evolving market dynamics. Additionally, the Detroit automaker has scaled back its EV ambitions, trimming production goals and reducing investments.
Ford ended Wednesday’s session down 3.70% at $11.71, according to Benzinga Pro data.
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