Ford Motor on Tuesday became the latest automaker to raise the price of electric vehicles when it dramatically raised prices for its popular F-150 Lightning due to rising material costs.
The company began manufacturing the Lightning in April and had sold over 4,400 of them by the end of July. Ford has taken reservations for more than 200,000, and the higher prices will go into effect for the 2023 model year.
Ford said it was increasing starting truck prices by $6,000 to $8,500 for newly ordered vehicles. After the increase, the truck will cost from $46,974 for a base model to $96,874 for a Platinum version with an extended-range battery.
The increases do not affect customers who have already placed orders and are waiting for their trucks. Reservations give customers a place online to place an order to purchase a truck. Ford stopped taking orders due to strong demand, but said it would resume on Thursday when the new prices take effect.
“We announced pricing before the reopening of order banks so that our reservation holders can make an informed decision about ordering a Lightning,” said Marin Gjaja, chief customer officer of Ford’s electric vehicle division. , known as the Model e, in a statement.
Other automakers have also hiked the prices of their electric cars. Tesla has hiked the price of its Model 3 and Model Y by thousands of dollars in recent months, with cars now starting around $47,000 and $66,000.
All car prices, including conventional gasoline models, have risen due to a shortage of computer chips that has prevented automakers from producing as many vehicles as consumers want to buy. The price of electric vehicles has also increased as the supply of materials needed to manufacture batteries has not kept up with the rapid growth in demand. Commodity costs were also affected by the disruption caused by the coronavirus pandemic and Russia’s war in Ukraine. Ford executives said in July that the company expected materials costs to rise by about $4 billion this year.
The climate and health care bill known as the Cut Inflation Act making its way through Congress could help make electric vehicles more affordable by offering buyers tax credits. But many current models like the F-150 Lightning might not qualify because the bill requires that a certain percentage of a car’s battery be made in North America with materials from allies. The percentage would need to increase each year to ensure that cars continue to benefit from the tax relief.