Ford Motor to cut price on Mustang Mach-E electric vehicle

Ford Motor EV business

Ford Motor has announced that it will reduce prices on its electric vehicle, Mustang Mach-E, for the second time this year.

The decision comes after Tesla made a series of price cuts on its electric vehicles. Ford is also increasing production and improving the range for standard-range battery models in the second half of the year.

The automaker will reduce most Mach-E prices by $3,000 or $4,000, depending on the version, or up to 7.8 percent. For instance, the Mach-E Premium rear-wheel drive version’s price will fall from $50,995 to $46,995.

Mustang Mach-E’s US sales declined by 20 percent in the first three months of the year, and last month, the federal EV tax credit for the Mach-E fell by half to $3,750 from $7,500 due to new battery sourcing requirements.

In January, Ford reduced the prices of the electric crossover SUV Mustang Mach-E by up to $5,900 per vehicle after raising prices in August by $3,000 to approximately $8,000 due to supply chain issues and higher material costs.

On Tuesday, Ford announced that all standard-range models would be powered by lithium iron phosphate (LFP) batteries, which will improve the targeted EPA range estimates and provide an additional 45 units of horsepower.

Tesla raised prices by up to $290 in Canada, China, Japan, and the United States on Monday after slashing prices on its top-selling vehicles since the beginning of the year. The price hike was Tesla’s first on its two top-selling models simultaneously in several markets, but the company’s lineup’s prices remain significantly lower than in January after a round of discounts.