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Ford is cutting prices on its all-electric 2023 Mustang Mach-E by up to $8,100 as the automaker attempts to free itself of inventory and compete with Tesla and its increasingly affordable EVs.
The total market share of new EV sales has increased, reaching about 8% in the US in 2023. But as market share has expanded, the consumer base has shifted from early adopters to the early majority — a group that is unwilling to pay a premium for EVs, Ford CFO John Lawler said earlier this month. told TechCrunch in an interview.
The price cut comes after the Mach-E lost eligibility for a $3,750 tax credit and sales of the all-electric SUV fell 51% in January compared to the same month in 2023. Overall EV sales were down 11% from January last year.
The Detroit Free Press first reported this new pricesWhich were sent to the automaker’s network of dealers.
Ford confirmed the price cut with TechCrunch, which is only for model year 2023 Mustang Mach-E vehicles and ranges between $3,100 and $8,100. Ford Credit is also offering some deals, including 0% financing for 72 months for qualified buyers and a $7,500 cash incentive for those who lease. That additional incentive is in addition to the tax credit Ford Credit already offers consumers.
“The Mustang Mach-E is America’s No. 2 EV SUV in 2023 and Ford is America’s No. 2 EV brand,” Ford spokesman Marty Gunsberg wrote in an emailed statement. “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.”
Image Credit: ford
Automakers including Ford are racing to compete with Tesla amid slowing demand for premium-priced EVs.
“Tesla ramped up the 3 and Y at the same time, which we believe created a false sense of demand,” Lawler said. “These were two new vehicles that were now in a segment where it was affordable for early adopters and supply was very limited. And so, then you had this incredible growth, but their production was limited. “And so it seemed like there was this incredible demand, but it was taken up by early adopters.”
Lawler said that when Tesla started dropping prices, the conventional wisdom was that the company was trying to disrupt the industry and “keep the rest of us out.” Instead, he theorized that Tesla was reacting to the same changing market conditions.
Tesla spends the latter half of 2022 and all of 2023 price manipulation Its four models: Model S, Model X and the popular Model 3 and Model Y vehicles. The company, which does not use a dealership model and instead sells directly to consumers, cut prices every quarter last year — a strategy that boosted sales and reduced profits,
Tesla shipped a record number of electric vehicles in the fourth quarter, helping it reach 1.81 million deliveries in 2023. operating income got a shock too This led to increased R&D costs, an increase in the speed of the Cybertruck, and continued price cuts on its best-selling vehicles, the Model 3 and Model Y.
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