• Ford has reduced Mustang Mach-E prices in response to a sales decline, citing market changes.
  • Mach-E sales fell 51% in January, partly due to reduced tax credits.
  • The move reflects Ford’s efforts to stay competitive amid challenges in the EV market.

Ford Motor Company said Tuesday it has lowered prices for its Mustang Mach-E electric SUV in the US market to respond to a sharp sales decline that began in January. The base 2023 Mach-E now starts at $39,895, down $3,100; the high-end GT trim saw a $7,600 reduction to $52,395; and the extended-range premium model dropped by $8,100 to $48,895. Ford cited market changes for the price cuts, aiming to drive sales growth and enhance customer value.

Previously disclosed by Ford, Mach-E sales plummeted 51% in January to just 1,295 units. Additionally, due to US Treasury subsidy expiration, Mach-E’s available tax credit dropped from $7,500 to $3,750, with other models losing their tax credits. Ford’s Mach-E competes with Tesla‘s Model Y in the EV market, ranking second in US sales behind Tesla. Model Y’s price is currently $42,990, but it qualifies for the full $7,500 tax credit.

Also read: Tesla is set to construct a new $25,000 EV model by mid-2025

This is the first time the Mach-E is priced below $40,000

The new price reduction marks the first time the Mach-E is priced below $40,000. Ford is also offering 72-month interest-free financing and up to $7,500 cash incentives for leased vehicles to enhance competitiveness against Tesla. This isn’t the first price cut for the Mach-E; it has adjusted prices multiple times amid last year’s price war sparked by Tesla. Ford CEO Jim Farley noted consumer demand for lower EV prices, necessitating swift responses in a fiercely competitive market.

Ford is developing a smaller, more affordable electric vehicle

Meanwhile, Ford is developing a smaller, more affordable electric vehicle without disclosing its launch date. In addition to the Mach-E, Ford also announced new cash incentives of $7,500 for select models of its electric pickup truck, the F-150 Lightning. This reflects the harsh challenges facing the EV market amid weak demand. Ford, along with other traditional automakers, previously indicated slowing EV rollout to focus on higher-profit-margin hybrid and gas vehicle production.