The price war going on in electric vehicle stocks continues, and now, Ford (NYSE:F) is stepping in and dropping its own prices. Specifically, it’s the Ford F-150 Lightning that’s seeing the bulk of price cuts, and investors are not at all happy. With Ford stock down over 5% at one point in Friday afternoon’s trading, it’s clear investors didn’t want to see that price drop one bit.
The cuts weren’t superficial, either; these were closer to outright amputations than mere cuts. Cuts were set at different levels as well, depending on the model. The Pro model, already the lowest priced, saw a 16.6% cut in price. That lowers the price $9,979. Meanwhile, the Platinum Extended Range model’s very best saw a much milder 6.2% price cut, which still represents $6,079 taken off the top. Ford offered up an explanation as to the price cuts, citing a combination of improving capacity at manufacturing plants, improving materials costs, and improvements in production scaling.
Those who might wonder if this is a response to the “EV price war” kicked off by Tesla (NASDAQ:TSLA) and a series of price cuts that followed likely wouldn’t be out of line. It also likely doesn’t hurt that Ford suffered something of a crisis of confidence in the market of late. We’ve seen its latest delivery reports, and we know full well those haven’t been good news. It also doesn’t help, based on word from the National Highway Traffic Safety Administration, that Ford has the most recalls of any car maker out there. Price cuts might be what’s needed to get shoppers in the door.
Analysts are largely split on Ford’s overall future. Ford stock has a consensus rating of Hold, thanks to the nearly-perfect split of four Buy ratings, five Hold and three Sell. With an average price target of $14.70, meanwhile, Ford stock offers shareholders a meager 3.41% upside potential.
