Benzinga - by Zacks, Benzinga Contributor.
Ford Motor Company (NYSE: F) is reducing the prices of some of its F-150 Lightning trims by up to $5,500 to stimulate demand for electric vehicles (EVs). The latest round of price cuts was focused on F-150 Lightning's mid-level variants.
Per the CarsDirect Report, the price adjustments of the F-150 Lightning came into effect on Apr 5, 2024. In the recent round of price cuts, the starting prices of Lightning Pro Standard Range and Lightning Platinum Extended Range variants remained unchanged at $54,995 and $84,995, respectively.
While the starting prices of the F-150 Lightning XLT Standard Range and Lariat Extended Range were reduced by $2,000 and $2,500, respectively, the starting price of the F-150 Lightning Flash Extended Range was substantially slashed by $5,500. The new starting price of the F-150 Lightning Flash trim is $67,995, closer to its launch price of $69,995.
With a target EPA range of 320 miles, a 15.5-inch touchscreen, the B&O sound system with HD radio and speakers, a wireless charging pad, etc., the F-150 Lightning Flash trim is a value for money.
Moreover, the F-150 Lightning, with the manufacturer's suggested retail price of below $80,000, qualifies for the full $7,500 federal tax credit in the United States.
In the first quarter of 2024, Ford sold 20,233 EVs in the United States, indicating a surge of 86% year over year. Sales of F's Mach-E rose 77% year over year, and the vehicle became the second-best-selling electric SUV in the United States.
With sales of 7,743 units, the F-150 Lightning remained the best-selling electric pickup in the United States.
The sales of EVs gained momentum after the automaker reduced prices of Mach-E by up to $8,100 in February. It also offered substantial incentives on the F-150 Lightning.
In January, Ford announced the prices of F-150 Lightning for the model year 2024, in which the prices of most trims increased from $2,000 to $7,500. The starting price of the F-150 Lightning Pro rose from $5,500 to $54,995.
Although EV sales gained momentum in the first quarter of 2024, the automaker announced to reduce its workforce by one-third at its Rouge EV Centre, where the F-150 Lightning is manufactured.
The recent round of price cuts followed the launch of Ford's new 2024 Mustang Mach-E, which has better range, rapid charging and quicker acceleration.
Zacks Rank & Other Key Picks F currently carries a Zacks Rank #2 (Buy).
Some other top-ranked players in the auto space are Geely Automobile Holdings Limited (OTC: GELYY), Toyota Motor Corporation (NYSE: TM) and Allison Transmission Holdings, Inc. (NYSE: ALSN), each sporting a Zacks Rank #1 (Strong Buy) at present.
The Zacks Consensus Estimate for GELYY's 2024 sales suggests year-over-year growth of 36.6%. The earnings per share estimates for 2024 and 2025 have moved up 34 cents and 54 cents, respectively, in the past 30 days.
The Zacks Consensus Estimate for TM's 2024 sales and earnings suggests year-over-year growth of 10% and 73.6%, respectively. The EPS estimates for 2024 and 2025 have improved $3.13 and $2.49, respectively, in the past 60 days.
The Zacks Consensus Estimate for ALSN's 2024 sales and earnings suggests year-over-year growth of 2.1% and 3.2%, respectively. The EPS estimates for 2024 and 2025 have improved 67 cents and 71 cents, respectively, in the past 60 days.
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