Shares of Ford Motor Co. (NYSE: F) experienced a slight dip of 1.1% in premarket trading on Monday following the announcement that the company would be cutting prices on its F-150 Lightning electric trucks. This move comes as Ford takes advantage of increased plant capacity, ongoing efforts to scale production and reduce costs, and improvements in battery raw material expenses.
The manufacturer’s suggested retail price (MSRP) for various F-150 Lightning models has been significantly reduced. The lowest-priced Pro model dropped by an impressive 16.6% to $49,995, down from $59,974. Similarly, the XLT 311A saw a decrease of 14.7%, now priced at $54,995. The Lariat 510A declined by 7.1% to $69,995, while the Platinum Extended Range slipped 6.2% to $91,995.
This strategic decision by Ford mirrors the approach taken by electric vehicle giant Tesla Inc. (NASDAQ: TSLA), whose recent price reductions contributed to an outstanding second-quarter deliveries report. Despite this recent adjustment in pricing, Ford’s stock has shown steady growth, with an increase of 18.1% over the past three months through Friday. In comparison, Tesla shares surged by 50.4%, while the S&P 500 (INDEXSP: .INX) gained 7.1%.