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Ford Raises Prices for Electric F-150 Lightning Trucks Again. Investors Don't Like ItFord Raises Prices for Electric F-150 Lightning Trucks Again. Investors Don't Like It. Root, Al. Barron's (Online); New York Ford Motor has again raised the price of its popular electric pickup truck, the F-150 Lightning, and investors don't seem to approve. The market response to the move shows how auto makers are stuck between a rock and a hard place. Price cuts have triggered selloffs of EV makers' stocks recently. Now a price increase is doing the same. The cost of the electric version of Ford's (ticker: F) most popular pickup truck has climbed 40% in roughly eight months. The base price of a F-150 Lightning now stands at about $56,000 , according to the company's website, up from a base price of $52,000 set in October . The October price was an increase from a previous price of $47,000, and when the vehicle went was first delivered in Mayon sale, the base model cost about $40,000. The Ford move stands out because, generally, prices for electric vehicles have been coming down. Tesla (TSLA), and others, cut prices in China in the fall, and their shares tumbled. Tesla is also offering U.S. car buyers $3,750 off to take delivery of a Tesla by the end of 2022; its stock has declined about 29% since the China price cuts in October, though CEO Elon Musk's new role at the helm of Twitter (TWTR) has played a part as well. Car investors have feared weaker demand for EVs could lead to lower profit margins and earnings. But they apparently don't like price increases, either. Ford stock slid almost 6% in midday trading Friday, outpacing the declines of the S&P 500 and Dow Jones Industrial Average at 1.6% and 1.5%, respectively. General Motors (GM) shares fell 3.2% F-150 prices have been going up for a few reasons. Raw material prices are up, and demand for the vehicle has been strong. Ford says it has about two years of reservations for the electric truck in its backlog. A Ford spokesman confirmed the price increases Friday, citing normal business planning, rising costs, as well as strong demand. Pricing can't go up forever, and investors are clearly worried that higher prices will dent consumer demand for the truck. Demand in the broader EV market has been a concern for a while. Morgan Stanley analyst Adam Jonas , RBC analyst Joseph Spak , and Goldman Sachs analyst Mark Delaney have warned investors that EV demand is softening. Given that outlook, the stock market doesn't seem to believe that everyone will pay Ford's higher price tag in this environment. Time will tell if Ford can still sell all the F-150 Lightnings it hopes to at the new price point. Ford stock is down about 41% so far this year. GM shares have dropped 38%. Tesla stock is off about 57%. |
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Msg # | Subject | Author | Recs | Date Posted |
2220 | Re: Ford Raises Prices for Electric F-150 Lightning Trucks Again. Investors Don't Like It | jmat | 1 | 12/17/2022 12:41:17 PM |