Tesla has long been the leader in EV sales, and Ford is apparently no longer content to sit at the No. 3 spot in all-electric model sales in North America. After Tesla’s recent significant price cuts, including up to a $13,000 savings on the Model Y, Ford has responded by slashing the entry price for its EV superstar, the Mustang Mach-E. As the Blue Oval ramps up its production of the sporty, compact EV this year, it is making its price point far more attractive.
The Mach-E Gets Price Cuts Across The Board
Ford isn’t exactly being quiet about its intentions to overtake Tesla in the EV sales race. The Mach-E was the third best-selling EV model in the U.S. in 2022 with nearly 40,000 copies sold, but it trailed the Tesla Model 3 and Model Y. Marin Gjaja, chief customer officer for Ford Model e, stated the company is “not going to cede ground to anyone.” As such, the Mach-E is the latest all-electric model to come with a more affordable price tag, and some of the cuts are massive. The Mach-E GT Extended Range has received the most significant price cut and will now start at $63,995, a $5,900 decrease from 2022 prices. The California Route 1 Extended Range model has been discounted by $5,580, and the two Premium trims have received price cuts of over $3,600. The lowest trims, Select, are much more modestly cut in price from $600 to $900. The optional extended-range battery is now $7,000, down from $8,600.
Tesla drew some ire for not applying its discounts to models that had been ordered prior to its price cut, and Ford obviously took notice. Customers who purchased a Mach-E and are awaiting delivery will automatically receive the adjusted price if the final sale date is after Jan. 1 of this year. With Tesla firmly positioned in Ford’s crosshair, the Blue Oval is also ramping up EV production. The company stated it has secured the batteries and raw materials to increase production of the Mach-E, the Ford F-150 Lightning all-electric truck, and the electric Ford Transit van this year.
Will Ford’s Price Cuts Be Enough To Sway Potential Tesla Buyers?
EV buyers in the market looking to save dough will also want to consider the federal $7,500 EV tax credit. For Ford, only models with an MSRP under $55,000 qualify, leaving only the two base, Mach-E Select models as eligible. Meanwhile, the Model 3 and Model Y both qualify for all trim levels under the $55,000 mark, and both now start at a lower price point than the electrified Mustang. Both the Model Y and Model 3 also come with a better driving range, according to the EPA.
Of course, brand loyalty also comes into play. While Ford is a stalwart of the American auto industry, Tesla is viewed, and in many cases rightly so, as the worldwide leader in the EV segment, and that attractiveness could be a factor for many buyers. Of course, Tesla CEO Elon Musk is also a polarizing figure, so some EV crossover buyers may opt for the Ford as a result. Then again, Tesla has no shortage of its own hardcore following.
For now, the Mach-E price cuts appear to be more in line with keeping the model competitive as Tesla has slashed its own prices. While this will certainly help Ford’s cause in trying to dethrone Tesla atop the EV sales podium, there is still much work to be done for the Blue Oval.