Ford (F) is targeting one automaker in particular: Tesla (TSLA) when it comes to promoting EV sales.
As first noted by CarsDirect.com (via Ford Authority), Ford has sent out an incentive bulletin to dealers offering a special $1,500 rebate to Tesla owners who purchase the F-150 Lightning.
Ford dealer officials confirmed the Lightning incentive and noted that the $1,500 incentive also applies to the Mustang Mach-E SUV. Potential buyers do not need to trade in their Tesla EVs, they just need to prove ownership of the Tesla, the person said.
The fine print, titled “Tesla Competition Conquest Bonus Cash,” states that prospective buyers must currently own or lease a 2008 model or newer Tesla to qualify for this incentive. , this incentive will run through July 8 for both 2024 and 2023 models.
Both Ford and Tesla stock were slightly lower in intraday trading, but concerns that Ford's new incentives could boost Lightning sales at the expense of Rivian's R1T pickup Stock prices are falling. The U.S. EV industry has been hit by demand concerns in recent months, with sales growth slowing to 3.3% in the first quarter, well below last year's 47% growth.
Ford's incentives are a bit unusual because manufacturers rarely target specific automakers when offering rebates. “Conquest” incentives typically target owners of a specific type of vehicle (pickup truck or EV) or vehicle segment (luxury brand).
Discounts get even bigger when combined with other Ford incentives. Currently, Ford is offering $7,500 bonus cash on the 2023 Lightning in XLT extended battery trim, $5,000 bonus cash on the 2023 Lightning Lariat, and $12,500 bonus cash on the top-of-the-line Platinum model.
Ford has not yet announced pricing for 2024, but reports say Ford has reduced the price of these new F-150 Lightning models by up to $5,500, depending on trim level. Ford will reduce prices by $5,500 on the upcoming mid-range “Flash” trim and smaller reductions on existing Lariat ($2,500) and XLT ($2,000). However, prices for the Pro and Platinum trims remain unchanged.
Ford's popular Mustang Mach-E, which posted strong sales in the first quarter, starts at just under $40,000 for the base model and goes up to $60,000 for the Mach-E Rally Edition. With additional incentives like the Tesla Conquest Cash, you can choose from Tesla's own cars (starting at $44,990), Volkswagen's ID.4 ($39,735) or the competitively priced Hyundai Ioniq. 5 ($41,800).
Ford recently announced major changes to its future EV plans. Ford announced last week that it would delay EV production at its massive Blue Oval City EV campus in Tennessee from its original 2025 start date to 2026. Ford also said it is “rescheduling” future EV launch dates at its Oakville, Ontario, plant, where it plans to produce the next generation three-row EV, likely a full-size SUV. That's what it means. The company aims to launch these vehicles in 2027, pushing back its original 2025 schedule.
Investors and Wall Street analysts will be looking for more information on EV demand and the impact of price cuts when Ford releases its first-quarter results after the bell on Wednesday, April 24th.
Pras Subramanian is a reporter for Yahoo Finance.you can follow him twitter And even more Instagram.
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