DEARBORN (WWJ) - Ford is raising the price of its popular electric truck for the second time in two months due to rising costs and supply chain issues, the company announced.
The Dearborn-based automaker said the cost increase affects the entry-level price of its electric F-150 Lightning pickup by $5,000 for the 2023 model year.
The entry-level model, specifically made for commercial and business customers, has a new price tag of just under $52,000 — up almost 11% from the first price increase announced less than two months ago and an overall 30% increase from the vehicle's original cost of $39,974 from May 2021.
In a statement released by the company, Ford said it had to adjust the cost “due to ongoing supply chain constraints, rising material costs and other market factors. We will continue to monitor pricing across the model year.”
As reported by AlixPartners, critical raw material costs such as cobalt, nickel and lithium have more than doubled since the beginning of the COVID-19 pandemic.
Ford estimated the rising cost of materials coupled with ongoing supply chain issues would result in $1 billion in unexpected costs during the third quarter.
The situation has given automakers no choice, but to raise the price of their electric fleet in order to make a profit.
"It's been an issue for EVs in general and has pushed the starting price of the F-150 Lightning up $10,000 since the vehicle's unveiling a year and a half ago," WWJ's Auto Reporter Jeff Gilbert said. "That has not impacted sales and most buyers are choosing more expensive trims."
The F-150 Lightning still remains the most afforable electric truck on the market, coming in well under its rivals at Rivian and General Motors.
As outlined by CNBC, the Rivian R1T starts at $68,575 and the GMC Hummer EV has a price tag of $86,645 for 2023.
Ford was not the only automaker forced to raise prices. Hummer announced a $6,250 increase on all its vehicles earlier in 2022, CNBC reported.
The prices for both the Tesla Cybertruck and the Chevrolet Silverado EV have yet to be announced.
Ford said the newest price hike does not affect current retail order holders waiting for delivery.
"Current commercial and government customers with a scheduled order are also unaffected by this adjustment," the company added.