Ford Motor is increasing the entry-level price of its electric F-150 Lightning pickup citing rising costs and supply chain issues amid increasing demand. This is the second price hike after a recent increase in August.
The starting price of the 2023 model year pickup will be raised by $5,000 by October 24, reports said citing an email statement.
The entry-level F-150 Lightning Pro will now cost $51,974, up 11 percent from $46,974 in August, while the initial price for the base model was $39,974 in May 2021.
Ford reportedly said it is “adjusting the price due to ongoing supply chain constraints, rising material costs, and other market factors. We will continue to monitor pricing across the model year.”
However, the price change will not affect current retail order holders and commercial and government customers with a scheduled order.
Initially, Ford’s Lightning with a starting price of about $40,000 was more affordable than many other EVs. However, the company was forced to raise the price tag in August attributed to significant material cost increases and other factors.
The company then raised the prices between $6,000 and $8,500 on the Lightning, depending on the model.
The costs for raw materials such as cobalt, nickel, and lithium, which are used to make batteries, have more than doubled during the coronavirus pandemic.
Ford in mid-September said that inflation-related supplier costs during the third quarter will run about $1 billion higher than originally expected and that inflation and parts shortages will leave the company with more unfinished vehicles than it had expected.
Amid the soaring metal prices and higher raw material costs, as well as surging demand, many EV makers, including Tesla, Rivian, and GM have raised vehicle prices in recent times.
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