Ford has slashed the price of its all-electric Mustang Mach-E by up to $4,000 while adding range and other features — the latest move in an EV price war sparked by Tesla.
Ford said on Tuesday it is reopening its order book and preparing to ramp up production of the vehicle in the second half of 2023, following factory upgrades. stronghold expects to produce 130,000 units at the plant in 2023. By the end of the year, it will have 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 lowered the price of the Mustang Mach-E.
The cuts come as competition for electric vehicle buyers heats up. It also comes after a quarter of late Mustang Mach-E sales, which fell 20% in the first quarter compared to the same period last year.
Ford reported Tuesday afternoon — hours after announcing the price cuts — that it made $1.8 billion in net income in the first quarter, rebounding from a $3.1 billion loss in the same quarter last year driven by sales of its older F Series pickups, Premium models and fleet sales. Ford reaffirmed guidance for full-year adjusted earnings of between $9 billion and $11 billion and approximately $6 billion in adjusted free cash flow.
Shares fell 2.16% in after-hours trading despite the company’s positive quarterly results.
Ford cut the cost of its two cheapest models by $3,000. The standard rear-wheel-drive Mustang Mach-E will now start at $42,995 and has an EPA-estimated range of 250 miles. The all-wheel-drive version, which starts at $45,995, will have a range of up to 226 miles. The biggest price cut—around $4,000 or roughly 8%—was made to the premium standard range and extended-range GT all-wheel drive models.
And according to Ford, standard Mustang models that have rolled off the line will now be equipped with lithium iron phosphate (LFP) batteries. The models will also be capable of DC fast charging to 80% of battery capacity from 10% in 33 minutes, which is a 5-minute decrease compared to previous standard range models, according to Ford.
The new models will also come with an upgraded version of the advanced hands-free driver assistance system known as BlueCruise. Version 1.2 of BlueCruise has the ability to make hands-free lane changes when the driver taps the turn signal and will also reposition or push the car away from larger vehicles while keeping them in the lane. Buyers will receive 90 days of free access to BlueCruise technology. Once the trial period ends, customers can activate the system via the subscription service.
Ford isn’t the only automaker lowering the prices of its electric cars. Tesla launched an electric car price war last fall and has continued to make its models more affordable in the United States, China and Europe.