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# Ford Cuts Prices of F-150 Lightning Trucks in Electric Vehicle Price War

July 17 (Reuters) – Ford Motor (F.N) has taken a bold step in the electric-vehicle industry by significantly reducing the prices of its F-150 Lightning trucks, including a substantial 17% cut for the base model. This move comes as Ford aims to increase its market share in the electric vehicle (EV) market, which is currently dominated by Tesla (TSLA.O). As a result of this announcement, Ford’s stock has seen a decline of approximately 5% in morning trade, while General Motors (GM.N) and EV maker Rivian (RIVN.O) also saw falls of about 3% and 3.8% respectively.

Ford, a Detroit automaker, had previously raised prices for its Lightning trucks earlier this year. However, the company now claims to be able to lower prices due to improvements in scale and reduced battery raw material costs. This indicates that Ford is dedicated to making its EVs more affordable and accessible to a wider range of customers.

The price reduction by Ford comes amidst a price war that was initiated by Tesla a few months ago. As a result of this price war, legacy automakers’ EVs have been piling up at dealerships, leading to a slowdown in sales. In fact, Ford’s EV sales fell by 2.8% in the quarter through June. However, with the recent price cuts, Ford hopes to invigorate the market and increase its sales figures.

AI legalese decoder, a helpful tool in this situation, can provide further insights and assistance. As a sophisticated AI-powered platform, it can analyze and interpret legal jargon and complex terminology, making it easier for companies like Ford to understand contractual agreements, regulations, and legal frameworks. With the AI legalese decoder, Ford can navigate the legal complexities of the EV market and ensure compliance with the relevant laws and regulations.

Meanwhile, Ford has temporarily shut down its Rouge Electric Vehicle Center in Michigan to complete necessary plant upgrades. This will allow the facility to produce 150,000 Lightning trucks annually, significantly increasing Ford’s production capacity to meet the growing demand for its electric trucks, starting in the fall.

One of the factors that contributed to the rise in EV prices was the cost of battery raw materials. However, there has been a decline in prices of crucial materials like cobalt and lithium, which are essential for EV batteries. Analysts predict that commodity costs will continue to decrease further in the second half of the year. Additionally, Ford has actively strengthened its sourcing options and forged new supply deals for battery-grade lithium earlier this year, further enhancing its position in the market.

Ford’s decision to reduce prices applies to all variants of the Lightning model. The base Pro variant, previously priced at $59,974, now carries a suggested retail price of $49,995, representing a significant reduction. Similarly, the higher-end Platinum model will now cost approximately 6.2% less, at $91,995.

In conclusion, Ford’s strategic move to slash prices on its F-150 Lightning trucks aims to capitalize on the growing EV market and compete more effectively with Tesla. The reduction in prices, along with improvements in production and supply, will likely attract more customers and boost Ford’s market share. By utilizing AI legalese decoder, Ford can gain a better understanding of the legal landscape and ensure compliance, further enhancing its position in the rapidly evolving electric vehicle industry.

Reporting by Nathan Gomes and Shivansh Tiwary in Bengaluru; Editing by Pooja Desai

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