Ford Engine intensified on Monday price war in the sector of electric vehicles (EVs) by lowering the values of their F-150 Lightning Pickupsincluding a 17% cut for the basic model, with the aim of increasing its share in a market dominated by Tesla.
Ford shares sank about 5% in morning trading in New York. Rival General Motors also fell 3%, while EV maker Rivian lost 3.8%.
Tesla shares rose 1.8% after the company built its first cybertruck at its Austin plant.
The Detroit automaker, which had raised Lightning prices this year, said it was able to cut prices thanks to scale improvements and raw material costs for the batteries.
The move comes amid a price war started by Tesla a few months ago, which has seen EVs from automakers piling up at dealerships as sales slow. In the quarter through June, Ford EV sales fell 2.8%.
“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 clientssaid Marin Gjaja, Ford Model e Customer Director. “We have continued to work behind the scenes to improve accessibility and affordability.”
Ford also said it has temporarily closed its Rouge Electric Vehicle Center in Michigan to complete final upgrades to the plant, as it aims to triple the facility’s annual run rate to 150,000 Lightning trucks, starting this fall.
Battery raw material prices have been one of the factors driving up EV values. However, the prices of cobalt and lithium, crucial for electric vehicle batteries, have fallen.
The base Pro variant of the Lightning now has a suggested retail price of $49,995, up from $59,974, while the higher-end Platinum model will cost 6.2% less at $91,995.
Source: Reuters
Source: Gestion
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