Ford (F) is targeting one automaker in particular when it comes to boosting electric vehicle sales – Tesla (TSLA).
As first pointed out before CarsDirect.com (via Ford body), Ford sent an incentive flyer to its dealers offering a $1,500 discount specifically for Tesla owners who purchase an F-150 Lightning.
A Ford dealer source confirmed the Lightning incentive and noted that the $1,500 incentive applies to the Mustang Mach-E SUV as well. Potential buyers don't have to trade in their Tesla EV, they just have to prove ownership of a Tesla, the source said.
The small print message, dubbed “Tesla Competitive Conquest Bonus Cash,” notes that potential buyers must currently own or lease a 2008 or newer Tesla to qualify for the incentive, which runs through July 8 for both 2024 and 2023 models.
Ford and Tesla shares are trading slightly lower in midday trading, but Rivian shares are falling on concern that Ford's new incentive could boost Lightning sales at the expense of Rivian's R1Tpickup. The US electric vehicle scene has been affected by demand concerns in recent months, with sales growth in the first quarter slowing to 3.3%, well below the 47% growth seen last year.
Ford's incentive is somewhat unusual since manufacturers rarely target specific automakers when offering rebates; The “Invasion” incentive is usually aimed at owners of a specific type of vehicle (vans or minivans). Electric vehicles(or composite part)Luxury brands).
When combined with other Ford incentives, the rebates add up. Currently, Ford is offering $7,500 extra cash for 2023 Lightnings in
Although Ford has not announced 2024 pricing yet, reports indicate that Ford has reduced F-150 Lightning prices by up to $5,500 on those newer models, depending on trim level. Ford will discount the upcoming mid-range “Flash” model by $5,500 and will have smaller cuts for the current Lariat ($2,500) and XLT ($2,000) models. However, prices for the Pro and Platinum models remain unchanged.
Ford's popular Mustang Mach-E, which had strong sales in the first quarter, starts at just under $40,000 for the base model and tops out at $60,000 for the Mach-E Rally Edition. Additional incentives like Tesla Conquest Cash give it an edge against Tesla's own cars (starting at $44,990), as well as the Volkswagen ID.4 ($39,735) and the competitively priced Hyundai Ioniq 5 ($41,800).
Ford recently announced major changes to its future plans for electric vehicles. Ford said last week that it would postpone electric vehicle production at its massive BlueOval City EV campus in Tennessee to 2026 from an initial start date of 2025. Ford also revealed it is “re-timing” upcoming electric vehicle launches at its plant in Oakville, Ont., where it plans To build the next generation of three-row electric vehicles, most likely full-size SUVs. The company aims to launch these vehicles in 2027, pushing back the original schedule of 2025.
Investors and Wall Street analysts will be looking for more color on electric vehicle demand and the impact of price cuts when Ford reports first-quarter results after the bell on Wednesday, April 24.
Pras Subramanian is a reporter for Yahoo Finance. You can follow it Twitter and on Instagram.
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