Under this program, current Tesla owners will receive a $1,500 rebate towards the purchase of a new Ford F-150 Lightning EV or Mustang Mach-E.

Ford's incentive bulletin, as reported by CarsDirect.com via Ford Authority, outlines the "Tesla Competitive Conquest Bonus Cash." This offer allows Tesla owners to qualify for the rebate by proving ownership of a 2008 or newer Tesla vehicle. The rebate applies to both the F-150 Lightning and the Mustang Mach-E SUV. Notably, there is no requirement to trade-in their Tesla EV.

The rebate program is valid until July 8 for the 2024 and 2023 model years of the Lightning and Mustang Mach-E. While Ford and Tesla shares are trading slightly lower, Rivian's stock is experiencing a decline due to concerns that Ford's new incentive may divert Lightning sales away from Rivian's R1T pickup.

The EV market in the US has faced demand concerns lately, with Q1 sales growth slowing down to 3.3%, significantly lower than the 47% growth observed in the previous year.

It is noteworthy that Ford's targeted rebate for a specific automaker is quite unusual, as automakers generally offer incentives based on vehicle segments or ownership of a certain type of vehicle, such as pickup trucks or luxury brands.

When combined with other Ford incentives, such as bonus cash, the discounts on the Lightning add up. Currently, Ford is offering $7,500 in bonus cash for 2023 Lightnings in the XLT extended battery trim, $5,000 in bonus cash for the 2023 Lightning Lariat, and $12,500 for range-topping Platinum models.

While 2024 pricing for the Lightning has not yet been announced by Ford, reports suggest that prices for newer models may see a reduction of up to $5,500, depending on the trim level. The mid-range "Flash" trim is expected to see a decrease of $5,500, while the existing Lariat and XLT trims may have smaller cuts of $2,500 and $2,000, respectively. However, prices for the Pro and Platinum trims are said to remain unchanged.

On the other hand, Ford's popular Mustang Mach-E, which had strong sales in Q1, starts at just under $40,000 for the base model and goes up to $60,000 for the Mach-E Rally edition. The addition of incentives like the Tesla conquest cash gives the Mach-E an advantage over Tesla's vehicles, which start at $44,990, as well as competitors like Volkswagen's ID.4 ($39,735) and Hyundai's competitively priced Ioniq 5 ($41,800).

Ford recently announced significant changes to its future EV plans, including pushing back EV production at its BlueOval City EV campus in Tennessee from 2025 to 2026. Additionally, the launch of upcoming EVs at its Oakville, Ontario plant, likely a full-size SUV, has been rescheduled from 2025 to 2027.

Investors and Wall Street analysts will be closely observing Ford's Q1 results, scheduled to be released on Wednesday, April 24, for insights into EV demand and the impact of price cuts.