Ford Unveils Electric F-150 Lightning at Just Under $40,000

Ford looks to charge up the electric vehicle market with the F-150 Lightning.
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Ford  (F) - Get Report is looking to jolt it competitors in the electric vehicle market with the introduction of the F-150 Lightning at a starting price below $40,000.

The automaker unveiled the all-electric pickup on Wednesday. It is at the forefront of the company’s $22 billion global electric vehicle plan.

Shares of the Dearborn, Mich., company were up 1.73% to $12.32 in premarket trading Thursday.

The vehicle got some pre-release publicity when President Joe Biden visited Ford's test track on Tuesday and took the truck for a ride, declaring "This sucker’s quick!"

The F-150 Lightning will sell for just under $40,000. The base price comes down to about $32,500 with a federal tax credit of up to $7,500 still available on Ford electric vehicles, according to the Associated Press.

The lowest-priced gas F-150 with a crew cab starts at roughly $37,000.

Tesla's  (TSLA) - Get Report Cybertruck has a price tag of $39,900, the Rivian R1T will sell for $69,000, and the GMC Hummer EV has a starting price of $79,995.

The F-series trucks have been America's top-selling vehicle for nearly four decades and Ford sells about 900,000 nationally in a typical year. EV currently sales make up less than 2% of new-vehicle sales in the U.S.

The truck will be built by Ford-United Auto Workers staff at the Ford Rouge Complex in Dearborn, beginning next spring.

Ford’s truck uses a lithium-ion battery supplied by South
Korea’s SK Innovation.

The two companies have signed a memorandum of understanding to jointly manufacture batteries in the U.S., Bloomberg reported, citing people familiar with the deal who asked not to be identified.

There are challenges facing the automaker. On Wednesday, Ford said it will trim output of its vehicles, including the F-150 truck, intermittently through June at eight North American plants, due to the semiconductor shortage, the company told CNBC.

The company also cited the semiconductor shortage last month while posting first-quarter earnings that beat analysts forecasts.

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