Inventory Awaits Savvy Buyers
Ford announced a 6-17% price reduction for its F-150 Lightning electric pickup trucks. The company has twice this year lowered the price of electric cars. While this is going on, Tesla has submitted plans to expand its plant in Brandenberg, Germany by a factor of two. If it succeeds, it will be given control of Germany’s biggest auto plant.
Facts
- Sales of electric vehicles increased by 48% year-over-year in the second quarter, but this was still not enough to keep up with the volume of vehicles leaving the factory. The stockpiling of unsold cars is another issue. In addition, this year will see the introduction of more than 30 brand-new models.
- More than 90,000 EV vehicles and trucks are currently available at dealerships, which is four times as many as a year ago, as reported by Cox Automotive. This amount is good for 103 days at the present sales pace, compared to around 50 days for the industry as a whole.
- Because of the disparity between supply and demand, car companies are cutting prices and increasing incentives. Ford Motor Company #F yesterday announced a $6,000 price cut (6-17%, or up to $10,000 in various configurations) for its F-150 Lightning electric truck. Aside from that, for some Lightning purchase loans, the corporation provides interest rate savings of 1.9% to 3.9%.
- On Saturday, Tesla announced the start of production of the long-delayed Cybertruck pickup truck, and General Motors #GM is expected to start deliveries of an electric version of the Chevrolet Silverado truck soon. Previously, Tesla price cuts prompted Ford to lower the price of the Mustang Mach-E electric sports car, but this did not translate into a reduction in Mach-E inventory to sales levels. As of the end of June, Ford dealers had 16,400 vehicles of this model in stock – about 2,000 more than were sold in the first six months of this year.
- Despite widespread curiosity, prospective buyers of electric cars are typically not ready to buy. Some people are put off by the high prices until they reach parity with comparable gasoline models. Others have concerns regarding the range of EVs, the availability of charging stations, and the time required to recharge a vehicle. Recharging is necessary after 200–250 kilometers of use for many of the currently available models.
- As a result of the Inflation Act, a $7,500 federal tax credit is no longer available for certain types of electric vehicles. Only vehicles with a specified percentage of battery materials made in North America or by US trading partners are eligible for the credit. In addition to these limitations, the maximum sales price for electric sedans is capped at $55,000, and the maximum sales price for SUVs, pickups, and vans is capped at $80,000.
- According to Ford, the Pro F-150 is currently priced at $49,995. Costing $69,995 is the XLT 312A configuration with the longer battery. The majority of Lightning models will have a price tag of less than $80,000, making them eligible for a tax credit of $7,500.
In essence
Why American automakers haven’t realized yet that compact, electric cars with a good range are a sure bet in the marketplace is beyond me. After all, few individuals have a genuine want for or interest in a pickup vehicle. Its users aren’t going to shell out $80,000 for a pickup truck since they wouldn’t dare abuse it the way it was intended. People desire an affordable electric car that can compete with the likes of the Toyota Corolla for daily use. To get around town, and commute to the gym, store, or work, you do not need an electric car that costs $80-$90K. Tesla has already mastered the process of mass-producing electric vehicles, while traditional manufacturers like General Motors and Ford are still attempting to figure it out.