Ford is cutting the price of its F-150 Lightning trucks by 17% — the latest attempt by the Detroit automaker to put a dent in the electric vehicle market that has been cornered by rival Tesla.
The move is an about-face for Ford, which raised prices earlier this year but will cut the cost of some F-150 models by $10,000.
The company has cited increased plant capacity at its EV manufacturing facilities as well as the drop in the price of battery raw materials as factors enabling it to make the vehicle more affordable for consumers.
The updated MSRP for the Pro model, its lowest priced electric pickup, will be $49,995, down from $59,974.
The Lariat 510A’s MSRP will decline to $69,995 from $76,974.
“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, Ford Model e.
“We’ve continued to work in the background to improve accessibility and affordability, to help to lower prices for our customers and shorten the wait times for their new F-150 Lightning.”
By lowering the sticker price on the F-150, Ford is hoping to mimic the success of Elon Musk’s electric car maker, Tesla, which dazzled Wall Street earlier this month with better-than-expected sales figures spurred by its price cuts.
In January, Tesla cut prices worldwide by up to 20% after it failed to meet investor expectations for deliveries in 2022.
This year, Tesla is projected to deliver 1.8 million models, topping its record of 1.3 million last year.
Tesla recently rolled out its first Cybertruck off of its assembly line in Austin, Texas, after production was delayed for two years.
The truck’s 2019 christening went off the rails when a window that was touted as unbreakable was cracked by a big metal ball.
Tesla originally said it would make three versions of the truck, ranging from about $40,000 to $70,000.
Later the company removed prices from the page where customers can decide whether to plunk down $100 and place an order.
Earlier this year, Ford and Tesla announced that Ford’s entire fleet of electric vehicles will gain access to Tesla’s 12,000 Supercharger stations throughout North America beginning next spring.
Ford shares slid 5.9% to $14.09.