Ford slashed the price of its all-electric Mustang Mach-E by as much as $4,000 while adding range and other features, the latest move in an EV price war sparked by Tesla.
Ford said on Tuesday that it is reopening its order book and preparing to ramp up production of the vehicle in the second half of 2023, following factory upgrades. Ford it expects to produce 130,000 units at the plant in 2023. By the end of the year, its the annual production run rate will be more than 200,000, according to a spokesperson.
This is the second time since the beginning of the year that Ford has reduced the price of the Mustang Mach-E.
The cuts come as competition for EV buyers increases. It also follows a quarter of the Mustang Mach-E lagging sales, which fell 20% in the first quarter from the same period a year earlier.
Ford reported Tuesday afternoon, hours after announcing the price cuts, that earned $1.8 billion in net income in the first quarter, a rebound from the $3.1 billion loss in the same quarter last year that was driven by sales of its legacy F Series trucks, premium models and fleet sales. Ford restated its full-year adjusted earnings guidance of between $9 billion and $11 billion and about $6 billion in adjusted free cash flow.
Shares fell 2.16% in after-hours trading despite the company’s positive quarterly result.
Ford cut the cost of its two cheapest models by $3,000. The standard rear-wheel-drive Mustang Mach-E range will now start at $42,995 and have an EPA-estimated range of 250 miles. The all-wheel-drive version, which starts at $45,995, will have a range of 226 miles. The largest price reduction, around $4,000 or nearly 8%, was on premium standard-range and extended-range GT four-wheel-drive models.
Mustang standard-range models coming off the line will now be equipped with lithium iron phosphate (LFP) batteries, according to Ford. The models will also be able to perform a DC fast charge to 80% battery capacity from 10% in 33 minutes, a reduction of 5 minutes compared to previous standard range models, according to Ford.
The new models will also come with an upgraded version of its advanced hands-free driver assistance system known as BlueCruise. BlueCruise version 1.2 has the ability to perform hands-free lane changes when the driver touches the turn signal and will also reposition or steer the vehicle away from larger vehicles while keeping it in the lane. Buyers will get 90 days of free access to BlueCruise technology. After the trial ends, customers can activate the system through a subscription service.
Ford isn’t the only automaker cutting prices on its electric vehicles. Tesla kicked off the EV price war last fall and has He continued to make his models. more affordable in the US, China and Europe.
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