Just two days after Tesla, Inc. tweeted showing the first Cybertruck rolled off the production line, Ford Motor Company decided to cut prices on its F-150 Electric Lightning pickup, a direct competitor to the Cybertruck.

The Wall Street Journal reported Monday morning that Ford had reduced the price of the Lightning Pro by nearly $10,000 to $49,995 (a 17 percent discount). The high-end version of the electric truck, the Platinum Extended Range F-150 Lightning, was reduced by $6,000 to $91,995. The Lightning tuck has encountered its fair share of problems. Shipments of the electric vehicle were halted earlier this year due to “battery problems.” A fire prompted a month-long halt in production. Marin Gjaja, chief customer officer of Ford’s electric vehicle business, told the WSJ that supply chain problems and rising material costs have driven up the cost of the electric truck over the past year. Ford has raised the recommended price of its electric trucks several times in the past year (read: here ). The automaker appears to be sacrificing margins to compete with Tesla during the price war. 2022 Ford F-150 Lightning XLT. Pre-production model with available features shown. Available starting spring 2022. Cargo and load capacity limited by weight and weight distribution. WSJ observed:

The move comes after Tesla–which held a 60 percent U.S. market share in electric vehicles this year through June, according to Motor Intelligence–reported an increase in deliveries in the second quarter that was helped by steep price reductions and rebates introduced earlier this year. Also over the weekend, Tesla began production of its Cybertruck nearly four years after the prototype was introduced.

So the tactic of cutting prices, often thought to be excessive, on vehicles does indeed appear to be effective in accelerating sales.

Earlier this year, Ford cut prices on the Mustang Mach-E electric SUV after Tesla lowered the price of the Model Y. Competition is getting fierce in the industry, and price is now also an option to consider. Too bad this also brings down the profits that can be made from these cars.