Ford Motor Company has announced significant price reductions for its all-electric 2023 Mustang Mach-E, slashing prices by up to $8,100 as part of its efforts to clear inventory and vie for market share against Tesla and its increasingly competitive electric vehicles (EVs).
The move comes amid a growing market for new EV sales in the United States, which reached nearly 8% in 2023. However, Ford’s Chief Financial Officer, John Lawler, revealed in an interview with TechCrunch earlier this month that the consumer base has shifted from early adopters to the early majority, who are less inclined to pay a premium for EVs.
The price cuts follow a decline in sales of the Mach-E, which dropped by 51% in January compared to the same month in 2023. Overall EV sales also saw an 11% decrease from January last year.
According to reports from the Detroit Free Press, the new prices were communicated to Ford’s network of dealers. Ford has confirmed the price adjustments, which apply only to model year 2023 Mustang Mach-E vehicles and range from $3,100 to $8,100. Additionally, Ford Credit is offering incentives such as 0% financing for 72 months for qualified buyers and a $7,500 cash incentive for lessees, on top of the existing tax credit passed on by Ford Credit.
In an emailed statement to TechCrunch, Ford spokesperson Marty Günsberg stated, “The Mustang Mach-E is America’s No.2 EV SUV in 2023 and Ford is America’s No.2 EV brand. 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, like other automakers, is racing to compete with Tesla amid shifting demand dynamics for premium-priced EVs. Lawler noted that Tesla’s aggressive pricing strategy, coupled with its direct-to-consumer sales model, has influenced market perceptions and prompted adjustments in pricing strategies across the industry.
Despite Tesla’s record-breaking EV shipments in the fourth quarter of 2023, the company faced challenges such as increased research and development costs and profit margin pressures due to ongoing price cuts across its vehicle lineup.
The adjustments in pricing by Ford reflect the broader shifts in the EV market landscape, with automakers navigating changing consumer preferences and intensifying competition in the electric vehicle segment.
