On Thursday, Ford raised prices for several versions of its best-selling electric pickup, the F-150 Lightning.
The price hikes affect the Standard Lariat, Platinum and Pro models. According to the automaker, the adjustments were made due “to current material costs, market factors, and supply chain constraints.” The Lariat received a 2% increase, bringing the price to $75,974 from $74,474. The Platinum’s price was raised by roughly 1% to reach $98,074 from $96,874. The largest of the three hikes affects the F-150 Lightning Pro, which now has an MSRP of $59,974, 7% higher than its former price of $55,974.
While these increases were relatively modest, they reflect both increasing demand for the automaker’s battery-powered products as well as the structural challenges which caused it to fall behind other brands in 2022. After it became the best-selling electric pickup, the F-150 Lightning has remained out of stock for some time due the sheer volume of orders. Although production has since resumed, the company was also forced to temporarily close the truck’s factory for over a month due to a battery-related fire, causing manufacturing to fall even further behind. While it maintains that its electric products will achieve a profit margin of 8% to 10% by 2026, Ford expects to lose $3 billion on its EV business in 2023.
In recent weeks, Ford has also made revisions to its business model. In a recent call with investors, the automaker explained that it would no longer categorize markets by location and would instead split operations by product. Electric and digital products, such as the F-150 Lightning, will now fall under the Model-E division, while gas and hybrid vehicles will fall under Ford Blue. The change appears to be a part of the brand’s efforts to revitalize itself after releasing disappointing full year results for 2022.