Ford Motor Co. slashed the cost of its electric 2023 Mustang Mach-E on Tuesday to be more competitive with Tesla and get the award-winning SUV into the hands of budget-conscious buyers.
Prices are being reduced $3,100 to $8,100 depending on the model, effective immediately, according to a pricing chart the automaker sent to its dealer network.
In addition, Ford Credit is offering 0% financing for 72 months to qualified buyers, plus a $7,500 cash incentive on leased vehicles that is applied to immediately to lower the lease payment, Ford spokesman Marty Gunsberg said.
“We are adjusting pricing,” Gunsberg told the Detroit Free Press. “As we continue to adapt to the market to achieve the optimal mix of sales growth and customer value.”
Ford wants to make way for the 2024 Mach-E, too, he said.
Mustang Mach-E price breakdown
The new prices of the 2023 Mustang Mach-E, which seats five people, are:
- Select rear-wheel drive (RWD) drops $3,100 to $39,895
- Select all-wheel drive (AWD) drops $3,100 to $42,895
- Premium RWD, standard range drops $4,100 to $42,895
- Premium AWD, standard range drops $4,100 to $45,895
- Premium RWD, extended range drops $8,100 to $45,895
- Premium AWD, extended range drops $8,100 to $48,895
- California Route 1 AWD, drops $8,100 to $48,895
- GT drops $7,600 to $52,395
- GT Performance Edition drops $7,600 to $57,395
The $1,800 delivery and destination fees are calculated separately. The battery range on these vehicles is EPA-estimated at 250 to 312 miles per charge, depending on the battery pack and other details, according to the Ford website.
The Mach-E does not qualify for the $7,500 tax credit, Gunsberg confirmed.
Of the versions available, the Mach-E Premium has been the top seller and is also the trim with the most availability now, Gunsberg told the Free Press.
Chasing Tesla
Tesla, which is the top electric vehicle seller in the U.S., posted on its corporate website that prices of the Model Y SUV are reduced through the end of February and will increase by $1,000 or more on March 1.
The Mach-E is second to Tesla in U.S. electric vehicle sales.
This is not the first price cut for the Mach-E or Tesla.
Ford CEO Jim Farley has been saying that consumers want electric vehicle prices to come down, and automakers must respond in a competitive market. Meanwhile, Ford is currently developing a smaller, more affordable electric vehicle that hasn’t been assigned a launch date yet.
Ford has sold 108,667 Mach-E SUVs in the U.S. since its launch in December 2020 through January 2024, Erich Merkle, Ford U.S sales analyst, told the Free Press. The Dearborn automaker sold 1,295 in January, Merkle said.
During the last three months of 2023, Mach-E saw its best sales quarter since it was introduced with nearly 12,000 vehicles, according to Cox Automotive.