Mustang Mach-E: Ford drops the price of its rival Tesla
CNN
–
stronghold It boosts production of its popular electric SUV, the Mustang Mach-E, and lowers its sticker price weeks later Tesla has lowered the prices of its cars. This move represents a significant reversal of the price hikes Ford announced it last summer in the 2023 models—but buyers may still be paying somewhat more than they were before the increases.
The Mustang Mach-E, a midsize electric SUV, was the automaker’s first serious electric effort in Dearborn, Michigan. Pricing and targeting squarely at the Tesla Model Y, which has a starting price of $53,490, the Mach-E is Ford’s bet to lure new-car buyers into the battery-powered future. Ford’s electric lineup has since been joined by the workhorse Ford F-150 Lightning. But the company still views the Mach-E as a crucial step for the electric-powered company’s growth.
Late last year, Darren Palmer, Ford’s vice president of electric vehicle programs, told CNN Business that Mach-E is sold out The automaker has been delaying its launch in more global markets in order to catch up with US demand.
“We could sell it at least two or three times,” he said at the time.
The price cuts Ford announced Monday were largest on the more expensive versions of the SUV, just as the biggest increases were on those models. The base sticker for the Mustang Mach-E GT Extended Range, a high-performance version of the SUV, is down to about $64,000 from $69,900 before, a decrease of $5,900. But this model was about $62,000 before the price increases last August.
When it announced these price bumps, Ford also said it was putting more standard features on the vehicles, including advanced driver assistance features.
The least expensive Mach-E, the standard, rear-wheel-drive range model, has been slashed by $900, dropping from about $46,900 to $46,000. The price of the extended battery pack option itself has dropped from $8,600 to $7,000.
Tesla announced price cuts of up to 20% on its electric cars earlier this month, after it raised prices in 2022.
When Ford announced price increases last summer, citing supply chain issues, the automakers indicated that they would continue to monitor market conditions throughout the next model year.
Ford announced last summer that it is increasing production of the Mach-E because it has added more battery capacity. The automaker also announced in late August that it was reopening order banks for the Mach-E that had been closed as the company worked to fill existing orders.
Ford said customers who complete their Mach-E deal following today’s announcement will pay the new lower price. Ford will contact Mach-E customers directly with a sale date after January 1, 2023 who already own their vehicles. automaker said.
At least some versions of both models currently qualify for federal electric vehicle tax credits, according to the Internal Revenue Service, but both are treated as cars, not SUVs, under the tax rules, unless they are equipped with a third row of seats.
This means that tax credits are available for the two-row Mach-E only and the two-row Model Y only if the sticker price is less than $55,000. For Model Y versions with a third row of seats, $4,000 option, buyers may receive price tax credits of up to $80,000. For the Mustang Mach-E, a third row of seats is not available.
The final amount of the tax credit may depend on When the vehicle is actually delivered to the customer And also, whether the clients themselves meet the annual income requirements.