Saturday, July 13, 2024

Ford Cuts Mustang Mach-E Prices by Up to $5,900 Following Tesla’s Global Price Reduction

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Ford has reduced the prices of its Mustang Mach-E electric crossover SUV by up to $5,900 per vehicle. This action follows Tesla’s recent global price cuts of up to 20% on its electric vehicles, putting pressure on other electric vehicle manufacturers to respond.

“Ford just cut Mustang EV prices in response to Tesla’s price cut. Mini price war about to begin with EVs in the US with Tesla’s shot across the bow on price cuts,” said Dan Ives, an analyst at Wedbush Securities, on Twitter.

This move has made at least one version of the Mach-E eligible for a $7,500 tax credit, as it now has a suggested retail price below the $55,000 threshold required.

See also: Tesla Price Reductions Putting Pressure on EV Competitors

The company had already planned to increase Mach-E production to 130,000 vehicles this year, up from 78,000 in 2022, and stated in November that it was ramping up Mustang Mach-E production with a target of 270,000 global units by the end of 2023.

The Mach-E is currently manufactured in Mexico and China. The lowest-priced models will experience smaller reductions, ranging from $600 to $900.

“Tesla’s price cut was a major blow to the prospects of competing EV models and the Mustang Mach-E directly competes with Tesla’s Model Y,” said Garrett Nelson, an analyst at CFRA Research.

Jim Farley, the CEO of Ford, has announced the company’s plans to scale their production, which will not only reduce wait times for customers but also help lower costs. This will result in savings that can be passed on to consumers, as Farley shared on his Twitter account.

See also: Used Tesla Prices Plunge as New Models See Significant Price Cuts

According to data, Ford’s Mustang Mach-E saw a significant increase in sales in the US, with 39,458 units sold in 2022, compared to 27,140 in the previous year. The automaker has also announced that customers who have already placed orders for the Mach-E will receive the benefits of the price cut without any additional action required on their part.

The price-cutting move was also followed by other electric vehicle manufacturers such as Aito, Vinfast, Xpeng, and Lucid.

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