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Ford Outpaces Tesla: Price Cut, Tripling EV Production

  • Ford cuts Electric F-150 Lightning prices up to $10,000 to stay competitive with Tesla.
  • The base model now costs $49,995; the platinum extended range is reduced from $98,074 to $91,995.
  • Ford triples Lightning production to 150,000 units annually at its Michigan facility.
  • Despite a five-week production halt, Ford sold 4,466 Lightnings in Q2 2023.
  • Tesla begins production of its Cybertruck, with plans to ramp up next year.

In the world of electric vehicles (EVs), competition has never been fiercer. In a dramatic development, automotive powerhouse Ford is taking bold measures to retain its competitive edge against industry titan, Tesla. The iconic American automaker recently announced that it would be reducing the price of certain models of its all-electric F-150 Lightning by as much as $10,000. Concurrently, Ford is also set to significantly increase its production capabilities.

The price cuts apply to several versions of Ford’s electric F-150, affectionately known as the Lightning. With this latest decrease, the base model of the Lightning will now set customers back $49,995, a significant drop from the previous price tag of $59,995. Even the luxury Platinum Extended Range version, the line’s most high-end offering, will experience a price cut, falling from $98,074 to $91,995.

The Lightning, a product of Ford’s Michigan-based production plant, made its debut in 2021 as a significant milestone in the journey towards electric vehicles. The move was even more momentous considering the F series is America’s best-selling pickup truck line. Now, Ford has halted operations at this facility temporarily, intending to expand its annual production capacity to a whopping 150,000 units, triple its original output.

The past two years have been a rollercoaster for the Lightning’s pricing, with Ford incrementally raising the cost due to supply chain disruptions and escalating raw material costs. The basic model’s price tag, initially set at $40,000, has seen several increases since its launch. However, Ford attributes the recent price cuts to declining battery costs, aligning the Lightning’s price closer to its original cost.

This shift in strategy from Ford coincides with a broader industry trend. Earlier this year, Tesla also adjusted the price tags of its popular Model Y and Model 3 electric vehicles. Not to be left out, Ford also revised the price of its electric Mustang Mach-E. Furthermore, some F-150 models even qualify for a $7,500 tax credit under the Inflation Reduction Act, sweetening the deal for potential buyers.

Despite production being halted for five weeks due to a fire incident involving a newly completed truck, Ford managed to sell 4,466 Lightnings in Q2 2023. On the other side of the aisle, Tesla has just initiated production of its innovative Cybertruck this month following multiple delays and has plans to ramp up production next year. 

All eyes will be on Ford’s Q2 2023 earnings, set to be released on July 27, providing valuable insights into the company’s performance amidst these recent strategic maneuvers.