Read more: Ford Cuts Price of F-150 Plug-In Pickup, Set to Resume Shipments

Demand for EVs has slowed down since late 2023. Carmakers of all stripes — be it EV giant Tesla Inc. or legacy auto companies like Ford or General Motors Co. — have started to lower prices on their vehicles in an effort to boost sales. Tesla’s recent first-quarter deliveries, which lagged significantly behind expectations, suggest the industry may not be out of the woods yet, and more price cuts may be looming.

Ford’s latest plans are further fueling those concerns.

“Reports of Ford reducing prices for the F-150 Lightning EV are sending shockwaves through the EV market, particularly affecting Rivian and Lucid,” Bloomberg Intelligence analyst Steve Man said. “Both startups are facing challenges that could be exacerbated by another round of EV price cuts, potentially eroding their profit margins and cash reserves at a time when they need to conserve cash.”