Ford Slashes Cost of Electric F-150 Lightning Truck in Bid to Keep up With Upcoming Tesla Cybertruck Launch
Key takeaways
- Ford has cut the price of its Lightning EV model by up to 17%
- The legacy carmaker is set to compete with Tesla’s Cybertruck, which has finally started production after a two-year delay
- Ford shares slumped 6% as investors took the cuts as a sign of worry
Car company Ford has just cut the price of its Lightning EV truck model as it looks to gain market share and show off how many EV trucks it can make, but investors weren’t impressed with the move. Instead, Ford’s shares tumbled at the news. Dive in below for the full rundown.
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The EV wars are heating up
To boost its market share as the EV trucks market heats up, Ford has announced it’s slashing the price of its flagship Lightning truck model. The legacy car manufacturer had already raised prices earlier this year but said it could cut them once more due to improved supply chains and battery material costs. The base model’s price has been cut by as much as 17%.
Ford’s Lightning EV truck is looking to compete with Tesla’s Cybertruck, which has finally begun production two years behind schedule. A few days ago, the company tweeted a picture of the very first Cybertruck to be completed (well, sort of — you can’t see that much of it). 200,000 customers have pre-ordered the new model.
Tesla already made its own price slashes earlier this year, which paid off with Elon even threw out a cheeky clap back at Ford’s move, tweeting that the Lightning “is a good vehicle, just somewhat expensive”. Ouch.
Wall Street’s reaction
It’s safe to say investors aren’t exactly happy with Ford’s copycat approach. Ford shares slipped as much as 6% at the news, which is the biggest drop in the stock price in five months, wiping $3.9 billion of value from the company.
The announcement had a knock-on effect for its rivals’ share prices. Rivian, which sells the R1T EV truck, dropped 3.7% while General Motors, which has the Hummer EV, declined by 2.7%.
Tesla, buoyed by the Cybertruck announcement, saw close to a 3% rise to its share price. We bet the others are seething.
The bottom line
Ford may have wanted its price cuts to come across as a show of strength, given the company intends to ramp up production of the Lightning truck, but investors took it the opposite way. Despite the two-year delay, Tesla is still the darling of Wall Street, as the Cybertruck announcement wowed traders. Ford and other competitors can only brace for impact.
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