Electric vehicle manufacturers are adjusting their marketing and pricing strategies as they seek to generate more business in their competition with internal combustion engine vehicles.
In 2023, 1.18 million buyers of U.S. vehicles purchased electric models, according to Kelley Blue Book. The electric vehicle share of the U.S. market increased from 5.9% in 2022 to 7.6% in 2023, Cox Automotive reported.
While interest in owning an EV is rising, their share of the automobile market is still slim. Internal combustion engine vehicles still dominate the market, forcing EV companies to think of ways to cut into the ICE competition.
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Ford (F) in May 2023 cut the price of its all-electric Mustang Mach-E by up to $4,000 and in July 2023 lowered the price of its signature EV truck the F-150 Lightning by 16%, or $9,980, to $59,974. It subsequently reduced the price even further to $49,995 in anticipation of a ramp up of sales of Tesla's new Cybertruck.
Lucid slashes its Air prices
Lucid (LCID) on Feb. 15 slashed the prices on its Air Pure, Air Touring, and Air Grand Touring seeking to generate more sales. It reduced the price of the Air Pure by $7,500, from $77,400 to $69,900; Air Touring $8,000, from $85,900 to $77,900; and Air Grand Touring by $1,000, from $110,900 to $109,900.
"We are optimistic about the future of EVs and believe strongly that increased adoption is a necessary path towards reducing the impact of climate change," Lucid CEO Peter Rawlinson said in a statement. "We have worked tirelessly to enable the Lucid Air lineup to deliver unsurpassed range and performance from less energy, and so I'm delighted that today we are able to share this benefit with our customers."
In early October, Tesla (TSLA) lowered the list price of the Model 3 Rear-Wheel Drive from $40,240 to $38,990 and its Rear-Wheel Drive version of its industry leading seller Model Y from $47,740 to $43,990, which is where they were in late January.
Tesla on Feb. 12 revealed a price cut on certain models of the nation's best selling EV, Model Y, slashing prices for the Real-Wheel Drive and Long Range All-Wheel Drive models by $1,000 to $42,990 and $47,990 respectively through the end of February.
The Austin, Texas EV company's CEO Elon Musk said the price cuts are Tesla's answer to "the essential quandary of manufacturing: Factories need continuous production for efficiency, but consumer demand is seasonal."
Tesla shares closed at $199.95 on Friday, down 50 cents, after hitting a high of $203.17 during the session.
The shares are up 9.5% since hitting a 2024 closing low of $182.63 on Jan. 25.
Image source: Tesla
Tesla is raising some of its prices
But Tesla also in February has bucked the trend of EV makers that are lowering the prices of their models (including itself), as the company raised the price of its upgraded Model 3 Long Range All-Wheel Drive by $1,500 to $47,490. The new Model 3 was priced at $45,990 when it launched on Jan. 10, but that price didn't last long.
Apparently the opening price was a limited-time only offer as in early February Tesla increased the price of the Long Range AWD by $1,000. Then, the automaker jacked up the price again by another $500 by Feb. 14, InsideEVs reported. With the destination and order fees added to the price, buyers will pay $49,130 for the vehicle.
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