Ford hikes starting price of electric F-150 Lightning for second time in less than two months

Ford F-150 Lightning pickup trucks are shown at the Ford Rouge Electric Vehicle Center on April 26, 2022 in Dearborn, Michigan. 

Bill Pugliano | Getty Images

DETROIT – Ford Motor is increasing the starting price of its electric F-150 Lightning pickup by $5,000 for the 2023 model year, citing rising costs and supply chain issues.

The new price of the 2023 Lightning Pro, an entry-level model meant for commercial and business customers, will be $51,974 – up nearly 11% from previous pricing and a 30% increase from the original $39,974 price in May 2021.

In an emailed statement, Ford said it is adjusting the price “due to ongoing supply chain constraints, rising material costs and other market factors. We will continue to monitor pricing across the model year.”

Current retail order holders and commercial and government customers with a scheduled order will be unaffected by the price increase, the company said.

Ford made waves when it announced the starting price for the Lightning would be about $40,000, making it more affordable than many EVs on the market. Wall Street praised the vehicle and it was a major boost for the company at that time, as investors were concentrating on EV start-ups.

But critical raw material costs such as cobalt, nickel and lithium have more than doubled during the coronavirus pandemic, according to a report from AlixPartners this summer.

The cost increases and other supply chain problems, which Ford estimated would result in $1 billion in unexpected costs during the third quarter, have forced automakers to increase EV prices to retain profits.

Less than two months ago, Ford announced price increases of between $6,000 and $8,500 on the Lightning, depending on the model.

The starting prices for the 2023 F-150 Lightning will now range from about $52,000 to $97,000, up from roughly $40,000 to $92,000 for the 2022 model year. Prices exclude taxes and shipping and delivery costs.

(With inputs from CNBC)