March 28, 2023

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A price war over electric cars in the making? After Tesla, Ford is also cutting prices | News

In the US, a price war seems to be looming between electric vehicle manufacturers. Ford will cut the price of its electric Mustang Mach-E by an average of $4,500 (about 4,140 euros). Thus, the company responds to the price cuts previously announced by Tesla. Other Ford models are also getting cheaper in the US.

It is not yet known if Ford will lower its prices in Europe as well. Tesla did this all over the world, including the Netherlands. Elon Musk, the company’s CEO, admitted last year that prices have become “embarrassingly high” and could hurt demand. According to him, demand has increased sharply in recent weeks by lowering prices.

People who bought a Tesla before the sale aren’t entirely happy about it. They see the value of their car in the used car market depreciating faster.

The price fell

And now the American automaker Ford is following suit. The cheapest Ford Mustang Mach-E will go on sale from $45,995 (€42,221), down from $900 (€826). The biggest price drop occurs with the GT Extended Range, which is $5,900 (€5,418) cheaper and can now be had from $63,995 (€58,776). Optional batteries with a higher range will also get cheaper, about 19 percent.

The price war in the electric vehicle market is intensifying with this move. Tesla had already decided earlier this month to implement price cuts of up to 20 percent.


Our competitors also adjust their prices. “If we want to stay competitive, we have to fight back,” said Maren Gaga, director of Ford’s electric business in the US. Price cuts in the US mean Ford electric, like a number of Tesla models, are eligible for a $7,500 tax credit for electric vehicles in the country.

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Ford had already indicated before the price cut that the all-electric Mustangs were unprofitable. Chief Financial Officer John Lawler said in June that Mach-E’s profits had been “decimated” by rising commodity prices.

Gjaja confirms that Ford is improving margins on the Mach-E, but he can’t say whether the model has become profitable. Among other things, volume is being targeted to reduce costs: Mach-E production will be increased by 67 percent this year, from 78,000 to 130,000 vehicles.

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