Ford cuts prices on electric Mustang Mach-E, following Tesla's lead

[mahatmakanejeeves]

AUTOS

Ford cuts prices on electric Mustang Mach-E, following Tesla’s lead

PUBLISHED MON, JAN 30 2023 | 8:30 AM EST | UPDATED 47 MIN AGO

Michael Wayland
@MIKEWAYLAND

KEY POINTS
• Ford is increasing production and cutting prices on its electric Mustang Mach-E crossover.
• Tesla previously announced similar plans for its EVs.
• The price cuts mean not all Mach-E models will be profitable on a per-unit basis, according to a Ford executive.

DETROIT — Ford Motor is increasing production and cutting prices of its electric Mustang Mach-E crossover, weeks after industry leader Tesla announced similar plans for its EVs.

The Detroit automaker said Monday it will lower pricing of the Mach-E, which is comparable to Tesla’s Model Y, by an average of about $4,500, depending on the model. The reductions range from $600 to $5,900, compared with Tesla’s price cuts of up to $13,000 on its Model Y earlier in January.

Wall Street analysts and investors largely applauded Tesla’s price reductions as a way to drum up demand and increase sales, despite concerns the move would erode some profits. Analysts expected Tesla’s cuts to put pressure on other automakers to cut their own prices.

In Ford’s case, the price cuts will mean not all Mach-E models, based on the trim, will be profitable on a per-unit basis, according to Marin Gjaja, chief customer officer of Ford’s electric vehicle business. He said Mach-E production is expected to increase from 78,000 vehicles to 130,000 units annually.

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[JohnSJ]

1. A lot of these companies should do it to offset the loss of the government tax credit. While that

doesn't effect the EV Ford Mustang or Tesla, both are significantly more expensive than a standard hybrid or ICE vehicle

A lot of these cars which qualified under the old government tax credit, are no longer eligible, because they are not assembled in the U.S., and they are still marking up the price over the MSRP, some as high as 5 to 10K above MSRP.

An example is the Toyota RAV 4 plug in hybrid, PHEV. The most amazing thing is that consumers are still willing to pay that mark-up.

I would also venture most consumers who are buying the EVs or PHEVs are from the more affluent segment of the population