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> The base version with 230 miles of range starts at $39,974, while the 300-mile version begins at $90,000. This is a shocker to me. It costs an extra $50k for

> The base version with 230 miles of range starts at $39,974, while the 300-mile version begins at $90,000. This is a shocker to me. It costs an extra $50k for a further 70 mile range? More than double the base price to get 30% more mileage. Is it using a totally different type of battery?

nickik 5y ago
It doesn't actually start at 40k unless you buy a special commercial version. I think they will anti-sell this version as hard as they can and remove every feature they can from it. In practice for normal people it will start at higher then that, and the avg sales price even of the lower range version will likely be 55k or even 60k. Its almost certainty the same battery just larger, that is how most EV are made. I would bet that they have a way larger margin on the larger battery to make the whole line profitable.
DaiPlusPlus 5y ago
More likely Ford's market segmentation. $40k for the base model suggests it's a loss-leader - or barely breaking even - or they're betting the entire model on expected continued price-drops in Lithium-Ion cells.
nabla9 5y ago
Pricing in the market economy is not based on cost of production. It's just one limiting factor for a price. Pricing is based on value for customer (value is here determined as willing to pay). Ford knows their customer base. They divide them into segments based on their income/needs. Those who can pay more, must get something more. Higher price segment generates bigger profit margins. Maximizing the amount of money you can squeeze from the consumer is both art and science.
Reason077 5y ago
> "the 300-mile version begins at $90,000." The article is incorrect on this point. The 300-mile model actually starts in the "mid-$50,000s". It's the top end, fully specced-out version which runs $90k.
tzs 5y ago
The 300 mile version starts at $49,974, before incentives and tax credits [1]. [1] https://arstechnica.com/cars/2021/05/ford-reveals-pricing-for-the-f-150-lightning-pro-work-truck https://arstechnica.com/cars/2021/05/ford-reveals-pricing-fo...
rasz 5y ago
The trick is the $39999.999999 price is pure marketing and you wont be able to buy one, they will lottery off like 1000 units per quarter among the dealer network and get some great headlines about winning electric race.

nickik 5y ago

It doesn't actually start at 40k unless you buy a special commercial version. I think they will anti-sell this version as hard as they can and remove every feature they can from it. In practice for normal people it will start at higher then that, and the avg sales price even of the lower range version will likely be 55k or even 60k. Its almost certainty the same battery just larger, that is how most EV are made. I would bet that they have a way larger margin on the larger battery to make the whole line profitable.

DaiPlusPlus 5y ago

More likely Ford's market segmentation. $40k for the base model suggests it's a loss-leader - or barely breaking even - or they're betting the entire model on expected continued price-drops in Lithium-Ion cells.

nabla9 5y ago

Pricing in the market economy is not based on cost of production. It's just one limiting factor for a price. Pricing is based on value for customer (value is here determined as willing to pay). Ford knows their customer base. They divide them into segments based on their income/needs. Those who can pay more, must get something more. Higher price segment generates bigger profit margins. Maximizing the amount of money you can squeeze from the consumer is both art and science.

Reason077 5y ago

> "the 300-mile version begins at $90,000." The article is incorrect on this point. The 300-mile model actually starts in the "mid-$50,000s". It's the top end, fully specced-out version which runs $90k.

tzs 5y ago

The 300 mile version starts at $49,974, before incentives and tax credits [1]. [1] https://arstechnica.com/cars/2021/05/ford-reveals-pricing-for-the-f-150-lightning-pro-work-truck https://arstechnica.com/cars/2021/05/ford-reveals-pricing-fo...

rasz 5y ago

The trick is the $39999.999999 price is pure marketing and you wont be able to buy one, they will lottery off like 1000 units per quarter among the dealer network and get some great headlines about winning electric race.