Buying an electric vehicle just got a whole lot cheaper — at least for the time being. Ford just announced that it will majorly cut the cost of one of its popular EVs, the electric crossover SUV Mustang Mach-E, shortly after Tesla slashed its own price tags.
Ford is reportedly cutting prices by up to 8% on some models of the Mach-E, meaning savings of up to $5,900. The company is also slashing the price of its extended-range battery by up to 19%. All models of the luxury EV now cost less than $65,000.
Ford has pumped up production for the Mustang Mach-E this year, with its plant in Mexico planning to increase production from 78,000 vehicles in 2022 to 130,000 in 2023. Ford executives are saying the price cuts are a direct result of the increased production.
“Scaling will shorten customer wait times. And with higher production, we’re reducing costs, which allows us to share these savings with customers,” Ford Chief Executive Officer Jim Farley said on Twitter.
At @Ford, we want to make EVs more accessible, so we’re increasing #MustangMachE production & reducing prices across the Mach-E lineup. Scaling will shorten customer wait times. And with higher production, we’re reducing costs, which allows us share these savings with customers.— Jim Farley (@jimfarley98) January 30, 2023
Some seem to think the price drop is in direct response to Tesla, which dropped prices on its electric vehicles by as much as 20%.
“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,” Dan Ives, a tech analyst, posted on Twitter.
However, according to Reuters, General Motors said it had no plans on adjusting prices in response to other companies.
Whether it’s a “mini price war” or not, now may be the perfect time to switch to an electric vehicle. Aside from being more affordable, there are also a number of federal and state incentive programs offering rebates and tax credits for switching.
And the price tag isn’t the only reason. A typical car produces more than 5 tons of carbon pollution per year, whereas their EV counterparts eliminate tailpipe pollution.
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