Jim Cramer Reverses Stance on Ford’s F-150 Lightning Price Reduction, Expresses Concerns about EV Market
WHAT YOU SHOULD KNOW
- Jim Cramer, host of CNBC’s Mad Money, has changed his opinion on Ford’s F-150 Lightning electric pickup truck after the company announced a 17% price reduction.
- Cramer expressed concerns about a potential cost-cutting spiral in the EV market and noted that EVs were losing their excitement factor for some buyers who preferred traditional gas-powered cars.
- Cramer also discussed the timing of Ford’s price cuts, which coincided with Tesla’s announcement of its first Cybertruck.
CNBC’s Mad Money host, Jim Cramer, has changed his opinion on Ford Motor Co. after the company announced a 17% price reduction for its F-150 Lightning electric pickup truck. Cramer attributed Ford’s decision to cut prices to the waning novelty of electric vehicles in the eyes of many Americans. He expressed concerns about the potential for a cost-cutting spiral and remarked that the bloom may be off the electric vehicle rose sooner than he expected as EVs are losing their excitement factor for some buyers who have a sense of nostalgia for gas-powered cars.
Cramer noted that prospective EV buyers are exploring options from other manufacturers like Tesla, Rivian, and General Motors. Despite the price reduction, he highlighted the positive aspect that the Ford F-150 Lightning is still priced higher than its initial announcement in 2021. However, Cramer expressed concerns about Ford meeting its ambitious estimates, which are subject to uncertainty. He also criticized the timing of the price cuts, which coincided with Tesla’s announcement of producing its first Cybertruck, stating that the optics of Tesla’s Cybertruck were suboptimal.
Elon Musk, CEO of Tesla, responded to Cramer’s comments on Twitter, acknowledging the merits of the F-150 Lightning while pointing out its relatively high cost, particularly in the context of the current high-interest rate environment. Cramer recently visited Ford’s facility and expressed admiration for American ingenuity and innovation at Ford, stating that he believes they are undervalued compared to Tesla and other American-made products. Following these developments, Ford’s stock closed 5.94% lower at $14.09, while Tesla’s stock rallied 3.20% to $290.38.
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