The price of electric vehicles seems to be heading in the wrong direction. The price of Ford’s (NYSE: F) F-150 Lighting has gone up again, for the third time this year, and is now selling at a starting price of US$55,974, according to a report by Electrek.
The American carmaker’s electric pickup truck originally came at a starting price of $40,000, similar to the single-motor price of Tesla’s Cybertruck when it was announced in 2019. But that began to change in August when Ford bumped up the price of all its models by $6,000 to $8,000, and then again in October when the model’s base price went up to $52,000.
The latest increase brings the price of the base F-150 Lightning up 40% from when it was first launched. Ford was not able to comment on the latest price increase but it comes as the global average price of lithium-ion battery packs went up 7% to 151 per kilowatt-hour, according to BloombergNEF’s annual battery price survey.
This is the first time that battery prices went up since BNEF started tracking 12 years ago. The rise in battery prices comes as the cost of battery metals like lithium and nickel is also on the rise. BNEF’s forecast is that these increases won’t flip until 2024 as lithium production increases.
Electrek points out that Ford’s price increase coincides with the company’s plans to ramp up production. The company recently added a third shift at the Detroit assembly plant where the pickup truck is produced.
As of November, Ford has sold 13,258 units from the start of the year. The carmaker has said it would produce 150,000 F-150 Lightings in 2023.
The price rise isn’t limited to Ford, and it is threatening EV adoption on a broader scale. According to Inside EVs, EV prices are up 9% year over year, with a 2% increase, just from October to November this year. The average EV price is now $65,000.
Information for this briefing was found via Electrek, BloombergNEF, Inside EVs, and the sources mentioned. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.