Ford Follows Tesla in Cutting Electric Vehicle Prices

The lowest priced Mustang Mach-E — a rear-wheel drive model with a standard battery — now has a list price of $45,995, a reduction of $900. The high-performance Mach-E GT with an extended-range battery now sells for $63,995, a cut of $5,900.

Tesla’s least expensive car is the Model 3, which is smaller than the Mustang Mach-E, and starts at $43,990. The all-wheel drive Model Y, a more direct competitor of the electric Mustang, starts at $53,490. An all-wheel drive Mustang Mach-E with comparable battery range now lists for $53,995.

Electric vehicles priced below $55,000 can qualify for federal tax credits of $7,500 that were made available starting Jan. 1 under the Inflation Reduction Act. Ford’s price cuts will make more versions of the Mach-E eligible for the credit.

Ford said the new prices would automatically apply to customers who had placed orders and were waiting for their cars. Ford’s credit division is also offering subsidized interest rates of as low as 5.34 percent on Mach E orders placed between Jan. 30 and April 3.

Tesla has long dominated the electric car market, which it largely had to itself until the last couple of years, but is increasingly encountering stiff competition. Its rate of growth has slowed in China, where its is now outsold by a local manufacturer, BYD. In addition to Ford, Volkswagen, Hyundai, Kia and other automakers have introduced electric models in the United States that are selling well and are generally cheaper than Tesla’s luxury models.

Article source: https://www.nytimes.com/2023/01/30/business/ford-mustang-electric-prices.html