Jim Cramer explains Ford's electric vehicle price cuts

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CNBC's Jim Cramer on Monday analyzed Ford Motor 's move to slash prices for its electric F-150 Lightning pickup truck. Cramer said he thinks the price cuts are due at least in part to the novelty of EVs wearing off for many Americans. Ford announced on Monday it would cut prices for all versions of the Lightning, with the cheapest version sporting a sticker price of $50,000, roughly $10,000 less than its previous estimate. The automaker said its efforts to boost production and lower the costs of battery minerals have paid off, according to a CNBC report. "Who knows whether this will lead to a cost-cutting spiral?" Cramer said. "But one thing we do know after today is the bloom may be off the electric vehicle rose, as we always knew would have to happen eventually when there's mass adoption. It just happened a little earlier than I expected." Cramer said he thinks EVs are "losing their excitement factor," with some potential buyers feeling nostalgic for their old-fashioned gas-powered cars while others are realizing they can buy EVs from a host of manufacturers like General Motors , Rivian and Tesla . Cramer said the good news for investors with money in Ford is that despite these cuts, the vehicles' prices are still higher than they were when Ford first announced the new models in 2021, with the cheapest truck at $40,000, and production costs are lower. The bad news, however, is that it remains to be seen whether the company can meet its estimates, which Wall Street had dubbed "aggressive," according to Cramer. Ford's stock dipped on Monday, down nearly 6%. It doesn't help, Cramer said, that these cuts come just a few days after Tesla unveiled its first Cybertruck, the optics of which he called "suboptimal." "Ultimately, unless your costs come down — and that's what's happening with Ford — there will be no profit anyway," Cramer said. "But if an auto company doesn't make electric vehicles, that auto company will eventually be doomed, we all know that."