Ford takes second in US EV market after sales climb 86% as lower prices take effect


Ford takes second in US EV market after sales climb 86% as lower prices take effect

Ford is starting 2024 off strong with EV sales up 86% through the first three months. The growth was enough for Ford to place second in the US EV market behind only Tesla. Ford’s sales surge comes after slashing prices earlier this year.

Ford takes second behind Tesla in the US EV market.

Ford announced that electric vehicle sales increased 86%, with 20,223 EVs sold through the first quarter of 2024.

The F-150 Lightning remained America’s best-selling electric pickup, with 7,743 units handed over, topping Rivian’s R1T. Meanwhile, Mustang Mach-E sales surged 77% YOY with 9,589 electric SUVs handed over. The Mach-E was the second best-selling electric SUV behind Tesla’s Model Y.

Ford’s E-Transit was the top-selling electric van, with 2,891 models sold, up 148% over Q1 2023. This was the E-Transit’s best sales quarter since launching in 2022.

Commercial customers are gravitating toward all-electric options, with Ford Pro EV adoption rising by over 40%. Ford said many orders for the new 2024 F-150 Lightning are repeat customers. The E-Transit is seeing higher demand as government and small business adoption rates climb.

2024 Ford F-150 Flash (Source: Ford)

Ford’s EV sales surge in the first quarter comes after the company drastically reduced prices earlier this year.

The American automaker slashed Mach-E prices by up to $8,100 in February while offering significant incentives on the F-150 Lightning.

A recent report from data analytics firm Cloud Theory highlighted the impact of lower prices on Mach-E movement.

2023 Ford Mustang Mach-E Trim Previous MSRP New Starting price Difference
Select RWD $42,995 $39,895 -$3,100
Select AWD $45,995 $42,895 -$3,100
Premium RWD $46,995 $42,895 -$4,100
Premium AWD $49,995 $45,895 -$4,100
Premium RWD (Extended Range) $53,995 $45,895 -$8,100
Premium AWD (Extended Range) $56,995 $48,895 -$8,100
California Route 1 AWD $56,995 $48,895 -$8,100
GT $59,995 $52,395 -$7,600
GT (Performance Edition) $64,995 $57,395 -$7,600
2023 Ford Mustang Mach-E prices (Not including $1,800 destination fee)

According to the report, the Ford Mach-E movement was “dramatic and immediate,” as weekly movement surged from around 300 to over 1,000. It even reached over 1,800 in early March.

The uptick in sales was enough for Ford to top rival GM for second in the US EV market. GM sold 16,425 EVs, down over 20% YOY, as the automaker prepares to ramp up production of Ultium-based models like the Chevy Blazer EV, Equinox EV, and Cadillac Lyriq.

Ford Mustang Mach-E (Source: Ford)

Electrek’s Take

Despite EV sales climbing, Ford is pulling back on several EV initiatives. The company cut the workforce at its Rouge EV plant by one-third this month, citing slower-than-expected demand.

Ford is also delaying around $12 billion in EV investments. The move comes as overseas rivals like Hyundai, Kia, Volvo, and others continue gaining market share in the US.

Hyundai had its best first quarter ever after EV sales surged 100% in March. The IONIQ 5 set a new sales record with 6,822 units sold in Q1.

Kia’s first three-row electric SUV, the EV9, is off to a strong start in the US, with sales climbing 151% in March. Through March, Kia has sold 4,007 EV9s.

Despite plans to shut down its factory in Normal, IL, EV startup Rivian, topped expectations with 13,588 vehicles delivered in Q1.

Meanwhile, Tesla held its lead by a wide margin. Despite missing estimates, Tesla still delivered 386,810 EVs in the first three months of the year, enough to top BYD to take back the best-selling EV maker title.

As Ford pulls back, rivals are plowing ahead. Meanwhile, Ford is developing an affordable EV platform to compete with Tesla and low-cost automakers like BYD from China.

The first vehicles based on the platform are expected to be a smaller electric pickup and SUV with starting prices around $25,000.

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