Ford’s Targeted Incentive for Tesla Owners
Ford has set its sights on boosting electric vehicle (EV) sales, with one particular automaker in mind — Tesla. In an effort to entice Tesla owners to switch to Ford, the company has sent out an incentive bulletin to its dealers offering a $1,500 rebate specifically for Tesla owners who purchase an F-150 Lightning. The incentive also applies to the Mustang Mach-E SUV. Prospective buyers are not required to trade in their Tesla EV; they simply need to prove ownership of a Tesla vehicle.
The incentive, called “Tesla Competitive Conquest Bonus Cash,” is available to those who currently own or lease a 2008 or newer Tesla. It runs through July 8 for both the 2024 and 2023 model years. Ford’s move to target Tesla owners is somewhat unusual, as manufacturers generally offer rebates that target a specific type of vehicle or vehicle segment, rather than targeting owners of a specific automaker.
Ford’s incentive is expected to have an impact on the EV market, potentially affecting not only Tesla but also Rivian. While Ford and Tesla shares are trading slightly lower, Rivian shares are tumbling due to concerns that Ford’s new incentive may boost Lightning sales at the expense of Rivian’s R1T pickup.
Ford’s Pricing Strategy
When combined with other Ford incentives, the discounts for the F-150 Lightning add up. Currently, Ford is offering $7,500 in bonus cash for 2023 Lightnings in XLT extended battery trim, $5,000 in bonus cash for the 2023 Lightning Lariat, and $12,500 for range-topping Platinum models. Additionally, reports suggest that Ford has reduced prices for the F-150 Lightning by up to $5,500 on 2024 models, depending on the trim level. The upcoming mid-range “Flash” trim will see a $5,500 price cut, while the existing Lariat and XLT trims will have smaller cuts of $2,500 and $2,000, respectively. Prices for the Pro and Platinum trims will remain unchanged.
The Mustang Mach-E, another popular Ford EV, is also competitively priced. With a starting price just under $40,000 for the base model and going up to $60,000 for the Mach-E Rally edition, it offers a strong alternative to Tesla’s vehicles, which start at $44,990. The Mach-E also poses a challenge to other competitors in its price range, such as Volkswagen’s ID.4 ($39,735) and the Hyundai Ioniq 5 ($41,800).
Ford’s Future EV Plans
In addition to its current incentives, Ford recently announced significant changes to its future EV plans. The company has pushed back EV production at its BlueOval City EV campus in Tennessee from 2025 to 2026. Ford is also “retiming” the launch of upcoming EVs at its plant in Oakville, Ontario, where it plans to manufacture next-generation three-row EVs, likely including a full-size SUV. The launch of these vehicles is now scheduled for 2027 instead of the originally planned 2025 timeline.
The Impact on Ford’s Q1 Results
Investors and Wall Street analysts are eagerly awaiting Ford’s Q1 results, which will shed light on the impact of Ford’s incentives and price cuts on EV demand. The results will be released after the bell on Wednesday, April 24.
In conclusion, Ford is making a strategic move to attract Tesla owners by offering a $1,500 rebate on the purchase of an F-150 Lightning or a Mustang Mach-E. This targeted incentive is unique in the industry and may affect EV sales for both Ford and Tesla. Additionally, Ford’s aggressive pricing strategy for the F-150 Lightning and the Mustang Mach-E puts them in a competitive position against other EV manufacturers. Ford’s future EV plans, including production delays and timeline adjustments, reflect the company’s commitment to the EV market. The impact of these changes will be closely watched when Ford reports its Q1 results.
