(Reuters) – Ford Motor reduced prices of its electric F-150 Lightning trucks by about 17% due to an ongoing EV price war. The automaker attributed the price cut to improved scale and lower battery raw material costs.
Tesla initiated the price war, resulting in sluggish sales for legacy automakers. In Q2, Ford’s EV sales dropped by 2.8%. “Rapidly rising material costs and supply constraints increased the cost of the EV truck for Ford and our customers,” said Marin Gjaja, chief customer officer, Ford Model e.
Ford has been working to enhance accessibility and affordability while reducing waits for the F-150 Lightning. This move led to a 2.5% decline in Ford’s shares and a decrease in General Motors and Rivian’s stock prices.
EV prices were driven up by the cost of cobalt and lithium, essential for EV batteries. However, prices for these materials have decreased, and further drops are expected in the second half of the year. Ford has also secured more sourcing options, including new supply deals for battery-grade lithium.
On Monday, Ford announced price reductions for all Lightning models. The base Pro variant now starts at $49,995, down from $59,974. The higher-end Platinum model will cost approximately 6.2% less, at $91,995.
Reporting by Nathan Gomes in Bengaluru; Editing by Pooja Desai
Credit: The Star : Tech Feed
