AUTO

Ford Targets Tesla Owners With EV Conquest Incentive

April 23, 2024

Ford has introduced several strategic incentives enticing owners of competing brands to make the switch to Ford.
Ford is offering a $1,500 conquest incentive rebate to Tesla owners, not even requiring a trade-in but simply showing proof of ownership.
Directly targeting a competitor, such as Ford’s “Tesla Competitive Conquest Bonus Cash,” is somewhat unusual in the automotive industry.

Ford is intentionally setting its sights on Tesla, the leading EV manufacturer, with a strategic conquest incentive rebate designed to sway Tesla owners toward its electric lineup, specifically the F-150 Lightning and the Mustang Mach-E SUV. It also targets other carmakers with similar offers.

Chevy, Dodge, Subaru, Jeep Also Targeted

In recent weeks, Ford has introduced several strategic incentives aimed at strengthening its market share and enticing owners of competing brands to make the switch to Ford. Among these targeted initiatives, one in particular is designed to captivate owners of the Chevy Camaro, Dodge Charger, and Dodge Challenger models from 1995 onwards. This offer encourages them to consider the iconic Ford Mustang as their next vehicle purchase.

Ford has also rolled out incentives for the adventurous Ford Bronco, directly appealing to Jeep and Subaru owners. One of these incentives is pointedly designed for Jeep enthusiasts, while another is tailored for Subaru owners in the Seattle area, signaling Ford’s focused strategy in regions with strong brand loyalty.

Ford’s $1,500 Conquest Incentive Rebate to Tesla Owners

Through a unique marketing strategy reported first by CarsDirect.com and further detailed by Ford Authority, Ford is extending a $1,500 rebate to Tesla owners, a move not requiring the Tesla vehicle to be traded in but merely proof of ownership shown to acquire the rebate.

This aggressive push, called “Tesla Competitive Conquest Bonus Cash,” is crafted to attract those already familiar with electric vehicles by offering a financial incentive to switch allegiance. Eligibility is fairly broad, requiring only that the individual currently owns or leases a Tesla model from 2008 onward. This incentive is available through July 8.

The EV industry landscape in the U.S. has been subject to significant fluctuations recently, marked notably by demand concerns that have surfaced in recent months. During the first quarter, the growth of electric vehicle sales decelerated significantly to 3.3%, a stark contrast to the robust 47% growth witnessed last year. This slowdown has caused automakers to rethink their strategies to stimulate interest and sales among potential EV buyers with EV rebates.

In this tough sales environment, the Ford rebates, targeting Tesla owners with the “Tesla Competitive Conquest Bonus Cash,” stands out as an aggressive yet strategic conquest incentive maneuver. Such direct targeting is somewhat unusual in the automotive industry, where manufacturers typically design a “conquest” incentive to entice owners of a particular type of vehicle, such as pickup trucks or electric vehicles in general, or to appeal to shoppers within a specific vehicle segment, like luxury brands.

Ford’s decision to specifically single out Tesla owners reflects a bold departure from conventional marketing tactics, underscoring the intensity of the competition within the EV market, including between Ford and Tesla.

When combined with other Ford incentives, the savings for consumers become even more compelling. Currently, Ford is offering substantial bonus cash for the 2023 F-150 Lightning, including $7,500 for the XLT extended battery trim, $5,000 for the Lightning Lariat, and an enticing $12,500 for the range-topping Platinum models.

While Ford has not yet announced pricing for the 2024 models, reports indicate significant price reductions across several trims of the F-150 Lightning for the upcoming year. Specifically, the mid-range “Flash” trim is expected to see a price cut of $5,500, with the Lariat and XLT trims enjoying reductions of $2,500 and $2,000, respectively. However, prices for the entry-level Pro and the luxury-oriented Platinum trims are expected to remain the same.

Ford’s Mustang Mach-E, coming off strong sales in Q1, has rapidly become a prominent player in the electric vehicle market, with its base model starting at just under $40,000. This pricing strategy sees it go head-to-head with its competitors, including the Tesla Model Y (starting at $44,990), Volkswagen’s ID.4 ($39,735, or even lower with the tax credit), and the Hyundai Ioniq 5 ($41,800).

The range-tops at the Mach-E Rally edition, priced at $60,000, showcase Ford’s ambition to cater to a broad spectrum of customers, from the budget-conscious to those seeking high performance and luxury in an electric vehicle. The additional incentives for Tesla owners give the Mustang Mach-E a competitive edge, further sweetening the deal for prospective buyers considering a switch from Tesla or other brands.

Ford Pushing Back EV Production

Ford recently announced significant delays in its future EV plans while expanding hybrid offerings. Last week, the company revealed a delay in EV production at its BlueOval City EV campus in Tennessee, pushing the start date from 2025 to 2026. Additionally, Ford is “retiming” the launch of its upcoming electric vehicles at its plant in Oakville, Ontario, where it plans to build next-generation three-row electric vehicles, likely a full-size SUV, with a new launch target of 2027 instead of 2025.

The Future of Tesla

Tesla’s global vehicle deliveries in the first quarter of 2024 fell by 8.5%, causing concern among buyers. Its stock took a 29% plunge in Q1, making investors worried. News broke that Tesla planned to lay off “more than 10%” of its global workforce. All indications are that the company will recover from these losses and remain a strong competitor to Ford.