(Bloomberg) -- Ford Motor Co. slashed prices of its electric F-150 Lightning pickup truck by as much as 7.5% as its EV inventory balloons and the automaker prepares to resume deliveries this month following a halt earlier for an undisclosed quality issue.

The price cuts put in place April 5 partially reverse hikes in January as Ford was reducing production of its signature electric vehicle by half and eliminating a shift of workers. The biggest reduction of $5,500 is on the Flash extended-range model, which now starts at $67,995, the automaker said.

Ford said via email that the cuts will help it “adapt to the market to achieve the optimal mix of sales growth and customer value.”

The discounting comes as industrywide EV inventory soared 202% in the first quarter, despite $2 billion in discounts, according to a report from Bloomberg Intelligence analyst Kevin Tynan. The F-150 Lightning and Ford’s electric Mustang Mach-E are selling for the lowest prices since they launched.

“Ford dealers’ combined supply of F-150 Lightning and Mustang Mach-E soared to 130 days to begin 2Q vs. 31 a year earlier,” Tynan wrote. “Both are selling for more than $3,500 under sticker before factory incentives and even as those prices continue to fall.”

Ford’s Lightning price cuts fueled a selloff in shares of EV startup Rivian Automotive Inc., which were down as much as 8.7% Thursday. Ford shares gained as much as 0.6%. 

Read More: Rivian, Lucid Eye Record Lows as Ford Price Cut Fans EV Concerns

Ford’s Lightning discounts come as Chief Executive Officer Jim Farley is rethinking Ford’s EV strategy by delaying some models, cutting spending on battery-powered vehicles by $12 billion and pivoting to offer gas-electric hybrid propulsion systems across its lineup. Most US consumers are not embracing EVs, citing high prices and a spotty charging infrastructure. 

Ford has said it expects to lose as much as $5.5 billion on EVs this year and is putting a renewed emphasis on gas-fueled models such as the Bronco sport-utility vehicle. Farley said in February that progress in the EV market will “take more time than we expected 18 months ago.”

Ford is developing three small EVs starting at $25,000 that are due to debut in late 2026, Bloomberg has reported. Farley said those models, which include a compact pickup truck, a small SUV and a car designed for ride-hailing, are aimed at taking on cheap Chinese EVs expected to arrive in America in the coming years.

Among the latest changes with Lightning pricing, the popular XLT standard range model was reduced by $2,000, to start at $62,995. The Lariat extended range model fell by $2,500 to start at $76,995. The base price of the cheapest Lightning, the commercial “Pro” model, remains unchanged at $54,995.

The Lightning price cuts were reported earlier by CarsDirect.

(Updates with Bloomberg Intelligence report, Rivian stock move from the fourth paragraph)

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