The price of Ford‘s (F) electric vehicle is coming down. The auto giant now says it will reduce the price for the vehicle’s 2014 model year.
The base price for the Focus EV will drop by $4,000, falling from $39,200 to $35,200. Car-makers have been eagerly promoting electric vehicles for several years, but consumer enthusiasm has so far failed to materialize. Just 41,000 electric vehicles were sold in the U.S. during the first half of this year, roughly 0.5% of all vehicle sales, the Detroit News notes.
Still, a wave of price drops and additional incentives have increased electric vehicle sales 385% over the same time last year.
Electric vehicles also qualify for a $7,500 federal tax credit, which would effectively reduce the Focus EV’s base price to $27,700.
Other automakers are cutting the price of the electric vehicles in a bid to raise sales. Honda (HMC) recently trimmed $130 off the monthly lease price of its Fit EV.
General Motors‘ (GM), which is already offering a $4,000 cash discount on its struggling Chevy Volt, is expected to cut the price of the car again for the 2014 model year.
Shares of Ford climbed more than 1% in Thursday morning trading.