Automotive News reports Monday that Detroit automaker, Ford Motor (NYSE:F) has sent a memo to suppliers with plans to cut production on the company’s F-150 Lightning electric pickup truck by half in 2024.
"Changing market demand," was the reasoning given for the steep pullback.
The announcement arrives during a period when the entire industry is reducing its investment in electric vehicles due to slower-than-anticipated sales growth. Ford announced during the company’s 3Q call in early November that the company would be pulling back production of their popular electric Mustang Mach-E.
“We are also slowing down several investments, including making a decision with SK On to delay the second BlueOval SK JV battery plant in Kentucky.” Lawler added during the conference call in late October.
Ford CEO, Jim Farley announced early this month that the F-150 Lightning broke a monthly sales record in November after sales more than doubled (+113%) for the EV truck.
Ford sold more Lightning models in November than its entire sales for the third quarter, reaching 3,503 units sold.
As a pickup truck, the Lightning EV competes directly with Tesla’s (TSLA) freshly launched Cybertruck.
However, where the Cybertruck holds a starting price of $79.990, the F-150 Lightning starts at $49,995.
Shares of F are up 0.45% after market close on Monday.