Ford Motor (F) -) shares moved lower Monday after the carmaker lowered the price of its signature electric pickup, the F-150 Lightning, just days after Tesla (TSLA) -) rolled its first cybertruck off the assembly line.
Ford said it would lower the base price for the F-150 by around 16%, or around $9,980, to $59,974 per unit. Price cuts for the higher-end Platinum version were pegged at around 6.2%.
"Shortly after launching the F-150, rapidly rising material costs, supply constraints and other factors drove up the cost of the EV truck for Ford and our customers," said Ford's Model 3 chief customer officer, Marin Gjaja.
"We've continued to work in the background to improve accessibility and affordability to help to lower prices for our customers and shorten the wait times for their new F-150 Lightning."
Ford shares were marked 4.8% lower in early Monday trading immediately following news of the price cuts to change hands at $14.26 each. General Motors (GM) -), in turn, was marked 2.7% lower at $38.92 each.
Tesla Launches Cybertruck and Price War
The Ford price cuts come amid not only the rollout of Tesla's much-delayed cybertruck, which was unveiled this weekend in Austin, Texas, but also a broader EV price war started by Elon Musk's automaker late last year.
Earlier this month, in fact, Tesla said U.S. buyers of a new Model 3 or Model Y sedan would receive a $500 cash rebate, as well as three months of Full Self Driving access, when using a referral link as part of its 'Refer and Earn' program. Full Self Driving is Tesla's driver-assistance system.
The moves come amid a drive by Musk to focus on growing sales volumes and extending its lead in key markets over improving profitability.
It's a strategy he justified earlier this spring as a necessary step in the company's plan to generate recurring revenue, and longer-term earnings growth, from automated-vehicle sales over the coming years.
