In a game of “follow the leader,” Ford has responded to Tesla’s recent price cuts to the Model 3 and Model Y with a price cut of its own. According to a weekend report from Road and Track (R&T), Ford has slashed the price of its popular 2023 Mustang Mach-E by up to $5,900. Tesla slashed the prices of some of its models in January.
Second Top Seller In 2022
According to Ford, while the Mach-E finished 2022 as the third-most-popular electric in the U.S., the automaker was able to slide into the second spot for EV sales behind Tesla for the same year.
And, in a rather new but expected development, Ford told R&T that it believes it will sell more Mach-Es because it expected its revised supply chain to come online. Supply chain issues have bedeviled Ford for nearly the last three years as pandemic-caused shutdowns caused it to lose the support of the semiconductor industry. It has been slowly building back to pre-pandemic levels, but it has a way to go until it arrives. Still, the supply chain is filling, and the automaker “believes it will be able to sell even more Mach-E SUVs than before, all at a faster rate, and at a more affordable price than previous units.”
In a statement, Marin Gjaja, Ford Model E chief customer officer, said:
“We are not going to cede ground to anyone. We are producing more EVs to reduce customer wait times, offering competitive pricing, and working to create an ownership experience that is second to none. Our customers are at the center of everything we do -- as we continue to build thrilling and exciting electric vehicles, we will continue to push the boundaries to make EVs more accessible for everybody.”
Ford Spells Out Mach-E Price Cuts
According to the price cut list published by the Blue Oval, the Mustang Mach-E Select eAWD Standard Range has the smallest price trim. It is down only $600 to $48,995. Meantime, the rear-drive model’s price cut is a bit more at $900. The updated MSRP is $45,995. The largest discount is for the California Route 1 and GT Extended Range models. The discounts are $5,580 and $5,900, respectively. Meanwhile, the Premium Standard Range models –AWD and RWD – have discounts of $3,980 and $3,690, respectively. According to R&T’s math with the discounts, the Mach-E “averages out about $4,500 below where it stood in 2022.” There’s no price cut for the Mustang Mach-E GT with the standard battery pack.
R&T said it is “worth noting that the Tesla Model Y SUV, which competes against the Mach-E, saw its prices reduced by as much as $13,000” in Tesla’s recent price shakeup. “That monumental shift in pricing made room for the Tesla SUV to qualify the saw prices reduced by as much as $13,000. The price cut means Tesla’s SUV qualifies for federal tax credits.
R&T noted that it “isn’t shocking to see Ford try to dampen whatever market share gains that decision could bring Tesla in the coming months.” Gjaja told the Detroit Free Press that “Ford aims to increase Mach-E production from 78,000 to 130,000 units for North America and Europe in 2023.”
Ford Will Work With Discount CustomersFord Motor Photo
Marc Stern has been an automotive writer since 1971 when an otherwise normal news editor said, "You're our new car editor," and dumped about 27 pounds of auto stuff on my desk. I was in heaven as I have been a gearhead from my early days. As a teen, I spent many misspent hours hanging out at gas stations (a big thing in my youth) and working on cars. From there on, it was a straight line to my first column for the paper "You Auto Know," an enterprise I handled faithfully for 32 years. Not many people know that I also handled computer documentation for a good part of my earnings while writing YAN. My best writing, though, was always in cars. My work has appeared in Popular Mechanics, Mechanix Illustrated, AutoWeek, SuperStock, Trailer Life, Old Cars Weekly, Special Interest Autos, etc. You can follow me on: Twitter or Facebook.