Ford cuts price of electric Mustang Mach-E in response to Tesla

Ford Motor Co. is slashing the price of its electric Mustang Mach-E by an average of US$4,500 following Tesla Inc.’s own recent cuts, stepping up the price wars in a slowing EV market.

The discount comes on a model that Ford has already described as unprofitable, but the automaker said it hopes to offset further margin deterioration by boosting production 67 per cent this year. The lowest priced Mach-E now starts at US$45,995, down US$900, while the most expensive GT Extended Range version falls US$5,900 to start at US$63,995. The California Route 1 extended range version, meanwhile, is marked down almost 9 per cent to start at US$57,995.

The move, along with discounted financing rates as low as 5.3 per cent on the Mach-E, is meant to counter Tesla’s decision to cut prices across its lineup by as much as 20 per cent. It also brings the Mach-E in line with new caps on EV prices to qualify for federal tax credits of up to US$7,500 under the Inflation Reduction Act. The fight to win over buyers comes as analysts predict the pace of growth for EVs will slow this year.

 “Our competitors are also adjusting their prices,” Marin Gjaja, chief customer officer for Model e, Ford’s EV unit, told reporters. “As we look and want to stay competitive in the marketplace, we’re having to respond.”