Electric vehicle makers are adjusting their marketing and pricing strategies as they look to generate more business in their competition with internal combustion engine vehicles.
In 2023, 1.18 million U.S. vehicle buyers will purchase electric models, according to Kelley Blue Book. The share of electric vehicles in the US market increased from 5.9% in 2022 to 7.6% in 2023, Cox Automotive reported. Although interest in owning an electric vehicle is increasing, its share in the automobile market remains low. Internal combustion engine vehicles still dominate the market, forcing EV companies to think about ways to reduce competition from ICEs.
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Ford (F) in May 2023 it reduced the price of its all-electric Mustang Mach-E by up to $4,000 and in July 2023 it reduced the price of its signature EV truck, the F-150 Lightning, by 16%, or $9,980, to $59,974. It later reduced the price further to $49,995 in anticipation of increased sales of Tesla's new Cybertruck.
Lucid cuts the prices of its flights
Lucid (LCID) On February 15, it cut the prices of its Air Pure, Air Touring and Air Grand Touring, seeking to generate more sales. 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 at $1,000, from $110,900 to $109,900.
“We are optimistic about the future of electric vehicles and firmly believe that greater adoption is a necessary path to reducing the impact of climate change,” Lucid CEO Peter Rawlinson said in a statement. “We've worked tirelessly to enable the Lucid Air line to deliver unsurpassed range and performance with less power, so I'm thrilled that today we can share this benefit with our customers.”
In early October, Tesla (TSLA) dropped the list price of the rear-drive Model 3 from $40,240 to $38,990 and its rear-drive version of its industry-leading seller, the Model Y, from $47,740 to $43,990, which is where they were at the end of January .
On February 12, Tesla revealed a price cut on certain models of the country's best-selling electric vehicle, the Model Y, cutting prices for the all-wheel drive and long-range all-wheel drive models by $1,000 to $42,990 and $47,990 respectively through the end of February. .
Elon Musk, CEO of the Austin, Texas, electric vehicle company, said the price cuts are Tesla's response to “the essential dilemma of manufacturing: Factories need continuous production to be efficient, but customer demand consumers is seasonal.
Image source: tesla
Tesla raises some of its prices
But Tesla also in February bucked the trend of electric vehicle makers lowering the prices of their models (including itself), as the company raised the price of its upgraded Model 3 with long-range all-wheel drive by $1,500. at $47,490. The new Model 3 was priced at $45,990 when it launched on January 10, but that price didn't last long.
The opening price was apparently a limited-time offer, as in early February Tesla increased the price of the Long Range AWD by $1,000. The automaker then raised the price again by another $500 by February 14, InsideEVs reported. With destination and ordering fees added to the price, buyers will pay $49,130 for the vehicle.
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