Ford has announced it is cutting prices of its all-electric 2023 Mustang Mach-E by as much as $8,100 as the automaker attempts to rid itself of inventory to compete with Tesla and its cheaper EVs.
Total market share of new EV sales has grown, reaching nearly 8% in U.S. in 2023. The price cuts come after the Mach-E lost eligibility for a $3,750 tax credit and sales of the all-electric SUV fell 51% in January versus the same month in 2023 with overall EV sales down 11% from January last year.
The Detroit Free Press previously reported the new prices, which were sent to the automaker’s network of dealers.
Ford says the price cuts, which are only for model year 2023 Mustang Mach-E vehicles range between $3,100 and $8,100. Ford Credit is also offering a couple of deals, including 0% financing for 72 months for qualified buyers and a $7,500 cash incentive to those who lease.
“We are adjusting pricing for MY23 models as we continue to adapt to the market to achieve the optimal mix of sales growth and customer value”, Ford spokesperson Marty Günsberg said in a statement.“The Mustang Mach-E is America’s No.2 EV SUV in 2023 and Ford is America’s No.2 EV brand”.
Automakers, including Ford, have been racing to compete with Tesla amid softening demand for premium-priced EVs.Tesla spent the latter half of 2022 and all of 2023 tinkering with the price of its four models: the Model S, Model X and popular Model 3 and Model Y vehicles.
Tesla shipped a record number of electric vehicles in the fourth quarter, which helped it reach 1.81 million deliveries in 2023. Operating income also took a hit due to increased R&D costs, the ramp up of the Cybertruck and continued price cuts for its best-selling vehicles, the Model 3 and Model Y.
Philips Babatunde