The greatest barrier to EV adoption is the steep price premium relative to legacy vehicles—and for the past couple of years, prices have been moving in the wrong direction, thanks to supply-chain constraints and general post-COVID inflation.
When Tesla recently announced price cuts of up to 20 percent, the boo-birds crowed about softening demand, but we saw it as welcome news—and after taking a couple of weeks to digest the news, the stock market seems to agree.
Now Ford has responded with price reductions for the Mustang Mach-E. The entry-level Select RWD Standard Range now starts at $45,995, down $900 from the former MSRP, and the top-trim GT with extended range now goes for $63,995, a $5,900 reduction from the previous sticker. The optional Extended Range Battery now sells for $7,000, a $1,600 reduction.
Ford indicated that it’s getting its supply-chain SNAFUs sorted out, and plans to increase EV production: “With its new EV supply chain coming online, Ford is significantly increasing production of the Mustang Mach-E this year to help reduce customer wait times and to take advantage of streamlined costs to reduce prices across the board.”
The Mach-E was the third-best-selling EV in the US in 2022—Ford delivered just short of 40,000 units. The company says production capacity is about 80,000 units a year, and it aims to increase that to 130,000 units. The F-150 Lightning and E-Transit are also slated for production increases—Ford says it has “secured the batteries and raw material to scale production of all [EV] models in 2023.”
“We are not going to cede ground to anyone,” said Marin Gjaja, Chief Customer Officer, Ford Model e. “We are producing more EVs to reduce customer wait times [currently up to 150 days], offering competitive pricing and working to create an ownership experience that is second to none.”
Ford says it will do the right thing for recent buyers who missed out on the price cut: “Existing Mustang Mach-E customers awaiting delivery of their vehicle will automatically receive the adjusted price.” Customers who took delivery after January 1, 2023 will receive “a private offer” from Ford.
Gjaja confirmed that Ford’s new prices are a response to Tesla’s round of cuts, and to the price caps included in the new EV tax credit rules. “Obviously, our competitors are also adjusting their prices,” he said. “We’re having to respond.”