Automotive giant Ford Motor Company F is the latest to launch new financing offers in the growing competitive field of electric vehicles.
What Happened: U.S. electric vehicle leader Tesla Inc TSLA launched a 0.99% financing offer on the bestselling Model Y vehicle in May. The move was done as a potential push for second quarter deliveries.
Ford could be one-upping Tesla in the U.S. with a new 0% financing offer for leasing the Mach-E and F-150 Lightning electric vehicles.
The new promotional offer, along with new cash bonuses and leasing options, were announced on Monday as part of a Summer Sales Event, as reported by Teslarati.
The 0% financing is good for 2023 and 2024 models of the F-150 Lightning and Mach-E and is good for 24-month to 60-month terms. The company also has a $0 payments for up to 90 days offer as part of the promotion.
Why It's Important: Ford reported its electric vehicle sales were up 61% year-over-year in the second quarter. Ford ranked second behind Tesla for electric vehicle sales in the second quarter in the U.S.
Ford's 23,957 EVs sold in the U.S. for the second quarter consisted of 12,645 Mach-E models and 7,902 F-150 Lightning trucks.
Electric vehicles still make up a relatively small portion of Ford's overall automotive sales, totaling 4.5% in the U.S. for the second quarter.
The automaker trails Tesla by a significant margin, and the Tesla Cybertruck now provides direct competition to the F-150 Lightning.
Several Ford electric vehicle models come with cheaper starting prices than Tesla, and the new leasing and financing offers could lead to increased buying and market share in the current third quarter.
Leasing has grown as an option for electric vehicles across several automotive companies, and financing offers have also increased.
Tesla launched the 0.99% financing offer in May and also launched a 0% financing offer in China in April.
Ford will report second quarter financial results after market close on July 24 and could provide more color on how its electric vehicle demand is faring and more details on the new financing offer and its initial reception from consumers.
F Price Action: Ford shares were up 2.28% to $13.47 on Thursday, versus a 52-week trading range of $9.49 to $15.06. Ford stock is down 9.4% over the last year and up 12.0% year-to-date in 2024, according to Benzinga Pro.
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Photo courtesy of Ford
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