Ford targets Tesla owners with $1,500 EV ‘conquest’ rebates

Ford (F) is targeting one automaker in particular when it comes to increasing electric vehicle sales: Tesla (TSLA).

As first noted by CarsDirect.com (via Ford Authority), Ford sent out an incentive newsletter to its dealers offering a $1,500 rebate specifically for Tesla owners who purchase an F-150 Lightning.

A source at a Ford dealership confirmed the Lightning incentive and noted that the $1,500 incentive also applies to the Mustang Mach-E SUV. The source said potential buyers were not required to trade in their Tesla EV, only that they had to prove ownership of a Tesla vehicle.

Dubbed “Tesla Competitive Conquest Bonus Cash,” the fine print indicates that potential buyers must currently own or lease a 2008 or newer Tesla to qualify for the incentive, which runs through July 8 for model years 2024 and 2023.

Shares of Ford and Tesla are both trading slightly lower at midday, but Rivian shares are falling on concerns that Ford’s new incentive could boost Lightning sales at the expense of Rivian’s R1T pickup. The U.S. electric vehicle sector has been hit by demand concerns in recent months, with sales growth slowing in the first quarter to 3.3%, well below the 47% growth seen last year. last year.

Ford’s incentive is somewhat unusual since manufacturers rarely target specific automakers when offering rebates; Typically, a “conquest” incentive targets owners of a particular type of vehicle (vans or electric vehicles) or vehicle segment (luxury brands).

When combined with other Ford incentives, the discounts add up. Currently, Ford is offering $7,500 cash bonuses for the 2023 Lightning in XLT Extended Battery trim, $5,000 cash bonuses for the 2023 Lightning Lariat, and $12,500 for the top-of-the-line Platinum models.

Although Ford has yet to announce pricing for 2024, reports suggest that Ford has reduced F-150 Lightning prices by as much as $5,500 on these newer models, depending on trim level. Ford will discount the upcoming mid-range “Flash” trim by $5,500 and will have smaller reductions for the existing Lariat ($2,500) and XLT ($2,000). However, the prices of the Pro and Platinum versions remain unchanged.

The story continues

Ford’s popular Mustang Mach-E, which saw strong sales in the first quarter, starts at just under $40,000 for the base model and goes up to $60,000 for the Mach-E Rally edition. Additional incentives like Tesla Conquest Cash give it a leg up on Tesla’s own vehicles (starting at $44,990), as well as Volkswagen’s ID.4 ($39,735) and the Hyundai Ioniq 5 at a competitive price ($41,800).

Ford recently announced big changes to its future electric vehicle plans. Last week, Ford announced it was pushing back electric vehicle production at its massive BlueOval City EV campus in Tennessee to 2026, from its original start date of 2025. Ford also revealed it was “rescheduling” the launch of the next electric vehicles at its Oakville, Ontario plant, where it plans to build next-generation three-row electric vehicles, most likely a full-size SUV. The company aims to launch these vehicles in 2027, pushing back the original timeline of 2025.

Investors and Wall Street analysts will focus more on demand for electric vehicles and the effect of price cuts when Ford reports its first quarter results after the bell on Wednesday, April 24.

Pras Subramanian is a journalist for Yahoo Finance. You can follow it Twitter and on Instagram.

For the latest earnings reports and analysis, earnings whispers and expectations, and company earnings news, click here.

Read the latest financial and business news from Yahoo Finance