THE EV PRICE WAR IS JUST BEGINNING—FORD TAKES DIRECTLY AT TESLA
By Piero Facchin, January 30, 2023
The price war in the electric SUV market just got more intense. On Monday, Ford lowered the price of its electric crossover, the Mustang Mach-E, in response to Tesla’s recently announced price cut on its Model Y SUV. Ford is also offering reduced cost financing on the Mach-E through April 30. The price reductions range from $4,750 to $8,500, depending on the version.
“We’re not going to cede ground to anyone,” Ford’s customer manager Marin Gjaja said in a statement. Ford was already planning to increase Mach-E production this year for North America to 130,000 vehicles from 78,000 in 2022. The automaker plans to use lower-cost lithium-ion batteries from China’s Contemporary Amperex Technology (CATL) in North American Mach-Es to reduce costs and increase production.
Ford aims to increase global Mach-E production, including in China, to 270,000 units this year. This increase will help Ford be more competitive, but Tesla will still have scale and a cost advantage.
Ford has learned a thing or two from Tesla; it will reduce prices for customers who ordered a Mach-E but did not receive it and will contact those who took delivery of a Mach-E after January 1st.