Ford Motor Company (NYSE:F) unveiled significant price reductions for its F-150 Lightning electric vehicle (EV) lineup on Monday, following a series of steep price hikes since its debut.
The auto manufacturer stated that all trims of the Lightning would receive price cuts: its Pro commercial truck will now be around $10,000 less at a starting price of $49,995.
Meanwhile, the top-of-the-line Platinum Extended range will receive a $6,079 price cut, resulting in a new starting price of $91,995.
When Ford initially launched the Lightning EV in 2021, the company had stated that the entry-level Pro commercial truck would start below $40,000. However, due to rising material costs, component shortages, and production issues, the Pro model's price soared to a manufacturer's suggested retail price (MSRP) of $59,974 prior to the recent price cuts, nearly $20,000 higher than initially promised.
Ford attributed the price reductions to upgrades at its Rouge Electric Vehicle Center, declining raw material costs, and ongoing efforts to scale production and reduce costs.
The automaker plans to temporarily pause production at the Rouge facility to complete upgrades that will enable a production capacity of 150,000 Lightning trucks by fall.
The price cuts come at a time when Ford reported strong sales for the Lightning pickup, with a 119% increase in 2Q compared to the previous year and a 4.1% sequential increase from the 1Q.
However, mounting inventories across the industry, including electric vehicles, likely prompted automakers and their dealers to reduce prices ahead of the fall, traditionally a period when new vehicle releases occur.
Shares of Ford were down 3.9% on Monday morning in New York.
Contact Angela at angela@proactiveinvestors.com
Follow her on Twitter @AHarmantas