Ford Motor Company (NYSE:F) faced a drop in its stock value on Monday following the company’s announcement of significant price reductions on its electric F-150 Lightning. The move is aimed at making the popular electric truck more accessible to consumers. Ford attributed this price cut to increased plant capacity, ongoing efforts to streamline production costs, and improved battery raw material expenses.
In order to enhance its production capabilities, Ford temporarily closed the Rouge Electric Vehicle Center in Michigan for final upgrades. The automaker aims to triple the annual run rate at the facility to 150,000 F-150 Lightning trucks, starting this autumn. These upgrades are expected to enable Ford to lower the pricing of the entire F-150 Lightning lineup. The company anticipates that customers will experience shorter wait times and improved availability, with built-to-order trucks becoming more accessible as early as October, at an MSRP that is closer to the initial pricing.
Marin Gjaja, Ford’s Chief Customer Officer, acknowledged the initial challenges faced by the company due to rising material costs and supply constraints after the launch of the F-150 Lightning. However, he emphasized that Ford has been working diligently to enhance affordability and accessibility, resulting in these price reductions and shorter wait times for customers.
The updated pricing for the F-150 Lightning includes the Pro model with an MSRP reduced to $49,995 from $59,974, the XLT 312A Extended Range model with an MSRP reduced to $69,995 from $78,874, and the Platinum Extended Range model with an MSRP reduced to $91,995 from $98,074.
In related news, Tesla (NASDAQ:TSLA) announced on Saturday that the first Cybertruck has rolled off the assembly line in Austin, Texas.
Regarding Wall Street analyst ratings, Ford Motor currently has 9 Buy-equivalent ratings, 9 Hold-equivalent ratings, and 4 Sell-equivalent ratings. Seeking Alpha’s Quant Rating for Ford (NYSE:F) is Hold, primarily due to a low growth assessment. Furthermore, Seeking Alpha analysts hold a consensus Hold rating for Ford.
In early Monday morning trading, shares of Ford Motor declined by 4.94%, reaching $14.24. This drop occurred within the context of a 52-week trading range of $10.37 to $15.88. Despite the decline, the stock remains above its 50-day, 100-day, and 200-day moving averages. Ford’s relative strength index (RSI) remains above 50, indicating continued directional strength. General Motors experienced a decline of 3.20%, while Tesla (NASDAQ:TSLA) saw a rally of 3.44%.
Featured Image: Unsplash
Author Faith Yakubu 
