Weeks after rival Tesla Inc. decreased pricing on its electric vehicles globally by as much as 20%, Ford Motor Co. reduced costs of its electric crossover SUV Mustang Mach-E by as much as $5,900 per vehicle.
Ford's stock fell 2.9% in above-average trading to close at $12.89. Tesla dropped 6.3%.
The action is being taken at a time when Tesla's price decrease is putting pressure on other electric vehicle makers to react.
"Ford just cut Mustang EV prices in response to Tesla’s price cut. Mini price war about to begin with EVs in the US with Tesla’s shot across the bow on price cuts," said Dan Ives, an analyst at Wedbush Securities, on Twitter.
The change will reinstate eligibility for a $7,500 federal tax credit for at least one extra version of the Mach-E. To qualify, the Ford EV must have a suggested retail price of no more than $55,000.
Ford announced in November that it was speeding up Mustang Mach-E production and aiming for a global annual production rate of 270,000 by the end of 2023, including its China production. Ford had already planned to increase Mach-E production this year at its plant in Mexico to 130,000 vehicles from 78,000 in 2022.
The Mach-E is produced by Ford in China and Mexico.
"Tesla’s price cut was a major blow to the prospects of competing EV models and the Mustang Mach-E directly competes with Tesla’s Model Y," said Garrett Nelson, an analyst at CFRA Research.
Ford is offering discounts of up to 8% on a number of Mach-E models, as well as a 19% reduction in the cost of the extended range battery. Smaller price reductions of $600 to $900 are applied to the least expensive models. Only North American pricing are impacted by the Ford price decreases.
Jim Farley, the CEO of Ford, posted on Twitter, "Customer wait times will be reduced by scale. Additionally, as production increases, prices go down, allowing us to pass along the savings to customers."
In the United States, Ford sold 39,458 Mach-Es in 2018, up from 27,140 in 2021.
In response to competitors, General Motors said it has no intentions to change its prices.
The Bolt's prices were reduced by the Detroit carmaker by about $6,000 in June and by as much as 18% for the entry-level model. Earlier this month, the vehicle qualified for the $7,500 federal tax credit.
Existing Mustang Mach-E customers who are waiting for deliveries will automatically get the discount, according to Ford.
(Source:www.economictimes.com)
Ford's stock fell 2.9% in above-average trading to close at $12.89. Tesla dropped 6.3%.
The action is being taken at a time when Tesla's price decrease is putting pressure on other electric vehicle makers to react.
"Ford just cut Mustang EV prices in response to Tesla’s price cut. Mini price war about to begin with EVs in the US with Tesla’s shot across the bow on price cuts," said Dan Ives, an analyst at Wedbush Securities, on Twitter.
The change will reinstate eligibility for a $7,500 federal tax credit for at least one extra version of the Mach-E. To qualify, the Ford EV must have a suggested retail price of no more than $55,000.
Ford announced in November that it was speeding up Mustang Mach-E production and aiming for a global annual production rate of 270,000 by the end of 2023, including its China production. Ford had already planned to increase Mach-E production this year at its plant in Mexico to 130,000 vehicles from 78,000 in 2022.
The Mach-E is produced by Ford in China and Mexico.
"Tesla’s price cut was a major blow to the prospects of competing EV models and the Mustang Mach-E directly competes with Tesla’s Model Y," said Garrett Nelson, an analyst at CFRA Research.
Ford is offering discounts of up to 8% on a number of Mach-E models, as well as a 19% reduction in the cost of the extended range battery. Smaller price reductions of $600 to $900 are applied to the least expensive models. Only North American pricing are impacted by the Ford price decreases.
Jim Farley, the CEO of Ford, posted on Twitter, "Customer wait times will be reduced by scale. Additionally, as production increases, prices go down, allowing us to pass along the savings to customers."
In the United States, Ford sold 39,458 Mach-Es in 2018, up from 27,140 in 2021.
In response to competitors, General Motors said it has no intentions to change its prices.
The Bolt's prices were reduced by the Detroit carmaker by about $6,000 in June and by as much as 18% for the entry-level model. Earlier this month, the vehicle qualified for the $7,500 federal tax credit.
Existing Mustang Mach-E customers who are waiting for deliveries will automatically get the discount, according to Ford.
(Source:www.economictimes.com)