The F-150 Lightning electric pickup truck's sticker price has been significantly reduced, according to Ford Motor Company. The decision was made due to increasing factory capacity, falling prices for battery raw materials, and internal production-scaling initiatives by the Detroit manufacturer.
Ford said on Monday that the last adjustments at its Rouge Electric Vehicle Center in Michigan are almost finished, allowing for a broader range of the eagerly awaited electric truck, per AP News. Customers may anticipate a built-to-order F-150 Lightning in October for a manufacturer's recommended retail price (MSRP) that aligns more with the original cost when the vehicle was initially introduced.
The Pro model, the entry-level electric pickup, will now cost $49,995, down from the previous $59,974, one of the new costs. Additionally, the MSRP for the Lariat 510A model will drop from $76,974 to $69,995, making it more accessible to prospective customers. Likewise, the more expensive Platinum model will cost $91,995 after a 6.2% price cut.
Chief Customer Officer of Ford Model E, Marin Gjaja, recognized the initial difficulties experienced by the business and customers with the release of the F-150 Lightning, per TechCrunch. Pricing rose as a result of reasons including supply shortages, rapidly growing material prices, and other considerations. Moreover, Ford has been working hard behind the scenes to enhance customer pricing, accessibility, and waiting periods.
Ford wants to establish the F-150 Lightning as a strong competitor in the electric pickup industry with its reduced pricing and improved manufacturing capabilities. Competition in this area of the automobile industry is heating up as rivals like General Motors, Chevrolet, Stellantis, Tesla, and Rivian increase their efforts to introduce their various electric truck models.
Falling Costs of Raw Materials
Ford's price decrease coincides with Tesla's electric vehicle pricing scrabble. As sales of EVs stalled, legacy manufacturers saw their EV inventories build up at dealerships. For instance, Ford's EV sales fell by 2.8% in the second quarter of this year.
Ford's initiative to reduce the cost of its electric vehicle is a component of a larger plan to maintain competition and recover market momentum. To complete the final plant enhancements and boost the facility's yearly production capacity to 150,000 F-150 Lightning trucks beginning this autumn, the firm temporarily shuttered its Rouge Electric Vehicle Center.
The price of raw materials for batteries has influenced EV pricing, according to Reuters. Yet recent trends indicate falling costs for vital substances like cobalt and lithium, which are necessary for EV batteries. Analysts predict commodity price declines in the second half of the year.
Ford has extended its sourcing options and proactively protected its supply chain. To lower costs overall, the vehicle manufacturer also obtained fresh supply contracts for battery-grade lithium early this year.
