Ford Cuts Prices on the Mustang Mach-E, Following Tesla
Ford will cut costs and boost production of the electric Mustang Mach-E, just a few weeks after Tesla’s price cuts shook the electric vehicle (EV) sector (via CNBC).
The Mustang Mach-E, considered a competitor to Tesla’s Model Y, saw prices slashed by an average of $4,500 across trims, now ranging from $600 to $5,900 off.
Ford’s base-level RWD Mustang Mach-E now starts at $45,995 USD, down from $46,895, while the California Route 1 eAWD edition saw the biggest price cut, down to $57,995 from $63,575.
Additionally, Ford is looking to boost Mach-E production, and chief customer officer Marin Gjaja says the company is targeting 130,000 units annually, up from its previous forecast of just 78,000 yearly units.
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“We are responding to changes in the marketplace,” Gjaja said of the price cuts and new federal incentives. “As we look and want to stay competitive in the marketplace, we’re having to respond.”
Still, Gjaja also said that not all Mach-E models and trims will be profitable on a per-unit basis.
Tesla’s price cuts took as much as 20% off off the price of some Model Y trims a few weeks ago, as part of cuts across the whole vehicle line.
“At @Ford, we want to make EVs more accessible, so we’re increasing #MustangMachE production & reducing prices across the Mach-E lineup. Scaling will shorten customer wait times. And with higher production, we’re reducing costs, which allows us share these savings with customers,” said Ford CEO Jim Farley on Monday.
At @Ford, we want to make EVs more accessible, so we’re increasing #MustangMachE production & reducing prices across the Mach-E lineup. Scaling will shorten customer wait times. And with higher production, we’re reducing costs, which allows us share these savings with customers.
— Jim Farley (@jimfarley98) January 30, 2023
Many analysts have pointed to increased demand for Tesla’s vehicles with the price cuts, despite the fact that some think it could erode some of its profits. While Ford is following Tesla’s lead here, Volkswagen said it won’t be cutting prices, likely because it can’t due to the costs of producing EVs.