Ford (F) is slashing prices and boosting production of its Mustang Mach-E electric vehicle (EV), in a move that likely comes as a response to Tesla’s big price cuts earlier this month.
Ford will cut prices across the range of the six Mustang Mach-E variants, with cuts stemming from as little as $600 to as large as $6,000. Most notable are the cuts to the Premium eAWD Standard range model, which takes it to $53,999 from $57,676, thus bringing it under the price cap of the IRA tax credit.
After the price cuts, four models of the Mustang Mach-E will now come under the IRA’s $55,000 price cap.
“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,” said Marin Gjaja, Ford Model e chief customer officer, in a statement. “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.”
Tesla’s Model Y SUV, which most closely competes with the Mustang Mach-E, starts at $53,490 for the base long range, with the Model Y performance starting at $56,990 before any options or software packages. Note that the Model Y, which comes equipped with five seats, falls under the $55,000 IRA tax credit cap, however the seven passenger version falls under the $80,000 IRA price cap. The seven passenger variants are $4,000 more than standard five passenger models.
As for the new Mustang Mach-E prices, Ford says existing customers awaiting delivery will receive the new prices. As for customers with a sales date after January 1st of this year that have already received their vehicle, Ford says it will reach out directly for a possible price adjustment.
Finally, though Ford said it was “significantly increasing production” of the Mustang Mach-E, the automaker did not say how many more vehicles it would produce compared to what the company was planning to build in 2023. Last year Ford sold 39,458 in the U.S., a 45% jump compared to the year prior.