Ford Motor (F) slashed prices for its F-150 Lightning EV truck Monday after Tesla (TSLA) produced its first Cybertruck and hinted at competitive pricing for its electric pickup. Ford stock extended its decline Tuesday, while Tesla stock retreated.
New and used car prices are under pressure in 2023 due to rising inventories and more expensive car loans. In June, industrywide inventory of electric vehicles rose, closing the month with twice the days’ supply as new vehicles in total, a Cox Automotive analysis showed last week.
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Ford Cuts Lightning EV Prices
On Monday, Ford cut the pricing of its all-electric F-150 Lightning pickup truck by $6,000-$10,000, citing improved capacity and lower battery costs.
After the cuts, the Lightning price will start at $50,000 plus destination fees. The company had hiked Lightning EV prices several times after its 2021 debut, due to supply issues and higher battery costs.
The Lightning price cut comes just two days after Tesla said it produced the first Cybertruck in Austin, Texas.
Tesla has not revealed Cybertruck pricing. But a tweet Monday from Tesla CEO Elon Musk said: “The Ford Lightning is a good vehicle, just somewhat expensive, especially given the high interest rates these days for any kind of loan.” Some people have taken that to mean the Cybertruck will be cheaper than its Lightning rival, though that is not clear.
Investors also want to know when Tesla will start mass producing and delivering the long-delayed Cybertruck. Meanwhile, some analysts worry about Tesla overcapacity issues in the months ahead.
Ford had cut prices of its Mustang Mach-E crossover in May for a second time this year. That followed a series of price cuts by Tesla.
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Ford Stock, CRMT Stock
In stock market trading Monday, Ford stock tumbled 5.9% to 14.09. Shares lost a further 0.4% Tuesday, extending its slide to a fifth straight day. Tesla stock shed 1.2% Tuesday after popping 3.2% Monday.
Several U.S. EV stocks, both legacy auto giants shifting to electric vehicles and startups, rallied Tuesday.
General Motors (GM) gained 0.6%. Among EV startups, Rivian (RIVN), Lucid (LCID) and Canoo (GOEV) rose.
Fisker (FSR) eased a fraction. Nikola (NKLA) surged nearly 14% Tuesday, extending gains after striking a partnership with BayoTech, which will buy 50 Nikola fuel-cell big rigs.
A ‘Winner’ Amid Auto Industry Turmoil
On Monday, used-car dealer America’s Car-Mart (CRMT) jumped on an analyst upgrade.
Stephens analyst Vincent Caintic upgraded America’s Car-Mart to overweight from equal weight saying it is “a winner whether industry turmoil continues or begins to recover.”
The Stephens analyst also hiked his price target on CRMT stock to $135. That’s nearly double from his $70 prior target, and 15% above where shares traded on Monday.
America’s Car-Mart says it helps credit-challenged customers get into affordable, quality used vehicles. Its stock belongs to the small-cap Russell 2000 index.
Car-Mart stock jumped 15.3% to 119.52 Monday. CRMT stock rose a further 2.1% Tuesday and is up more than 60% from March lows.
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