In a move widely seen as an answer to the price cuts put in place by Tesla earlier this month, Ford (F) is slashing the prices and ramping up production of its Mustang Mach-E electric vehicle models.
All six Mustang Mach-E variants will see their prices cut, with reductions ranging from as small as $600 to as much as $6,000. The most notable cuts will be to the Premium eAWD Standard range model, which will see its price fall from $57,676 to $53,999, which brings it below the price cap to qualify it for the IRA EV tax credit.
In total, four models of the Mustang Mach-E will see their prices drop below the IRA’s $55,000 price cap to qualify for the tax credit.
In a statement, Ford Model E chief customer officer Marin Gjaja 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.”
The price cuts bring the Mach-E more directly into competition with the Tesla Model Y SUV, which starts at $53,490 for the base long range model, putting its price well below the IRA tax limit for the credit. The Model Y Performance starts at $56,990 before adding any options or additional software packages. While the Model Y is over the IRA limit, if a buyer pays an additional $4,000 for the seven seat seating package, the vehicle will fall below the higher $80,000 IRA price cap for a vehicle with such a configuration.
Ford has said existing customers who have purchased vehicles and are awaiting delivery will be charged the new discounted prices, and customers who ordered their vehicles after January 1st of this year will be approached and offered a possible price-adjustment by Ford.
Although Ford has said it will be significantly increasing production of the Mach-E, it has not put forth any specific numbers regarding the increased production, or revealed how many more vehicles it is planning to produce in 2023.
Last year Ford delivered 39,458 vehicles in the United States, which marked a 45% increase over the previous year.
