Ford (F) is targeting Tesla (TSLA) to promote EV sales. According to CarsDirect.com (via Ford Authority), Ford sent an incentive advisory to dealers offering a $1,500 rebate for Tesla owners who buy an F-150 Lightning.
The Lightning and Mustang Mach-E SUV receive the $1,500 rebate, according to a Ford dealer source. The source stated consumers don't have to trade in their Tesla EV, merely establish ownership. The offer, called "Tesla Competitive Conquest Bonus Cash," is available until July 8 for 2024 and 2023 model years. Buyers must own or lease a 2008 or newer Tesla.
Ford and Tesla shares are both down slightly in noon session, but Rivian shares are down on concerns that Ford's new incentive may boost Lightning sales at the expense of R1Tpickup. In Q1, US EV sales fell to 3.3% from 47% last year, raising demand concerns.
Most rebates, called “conquest” incentives, target owners of a specific vehicle type (pickup trucks or EVs) or segment (luxury brands). Ford's incentive is uncommon. Discounts add up with other Ford offers. Ford is providing $7,500 in bonus cash for 2023 Lightning XLT extended battery level, $5,000 for Lariat, and $12,500 for Platinum versions.
Although Ford hasn't confirmed 2024 pricing, sources claim it has dropped F-150 Lightning costs by much to $5,500 for newer models, depending on trim level. Ford will cut the mid-range “Flash” trim by $5,500 and the Lariat ($2,500) and XLT ($2,000). However, Pro and Platinum trim prices remain intact.
Ford's Mustang Mach-E, which sold well in Q1, costs just under $40,000 and goes up to $60K for the Mach-E Rally version. Incentives like Tesla conquest cash help it compete with Tesla's own vehicles (beginning at $44,990), Volkswagen's ID.4 ($39,735), and the Hyundai Ioniq 5 ($41,800).
Ford has disclosed major EV plan modifications. Last week, Ford delayed EV production at its enormous BlueOval City EV facility in Tennessee until 2026 from 2025. Ford also said it was “retiming” the introduction of forthcoming EVs at its Oakville, Ontario factory, where it will construct three-row EVs, presumably full-size SUVs. The business plans to introduce those vehicles in 2027, delaying 2025.
Ford announces Q1 results after the bell on Wednesday, April 24, and investors and Wall Street analysts will look for further information on EV demand and price cuts.
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