Today, the best barrier to EV adoption is just not range or charging infrastructure—it’s the steep price premium relative to legacy gas vehicles—and for the past couple of years, prices have been moving within the improper direction, due to supply-chain constraints and general post-COVID inflation.
When Tesla recently announced price cuts of as much as 20 percent, the boo-birds crowed about softening demand, but we saw it as welcome news—and after taking a few weeks to digest the news, the stock market seems to agree.
Ford responded to Tesla’s moves with price reductions for the Mustang Mach-E. The entry-level Select RWD Standard Range now starts at $45,995, down $900 from the previous MSRP, and the top-trim GT with prolonged range now goes for $63,995, a $5,900 reduction from the previous sticker. The optional Prolonged Range Battery now sells for $7,000, a $1,600 reduction.
Ford indicated that it’s getting its supply-chain SNAFUs sorted out, and plans to extend EV production: “With its recent EV supply chain coming online, Ford is significantly increasing production of the Mustang Mach-E this 12 months to assist reduce customer wait times and to benefit from streamlined costs to cut back prices across the board.”
The Mach-E was the third-best-selling EV within the US in 2022—Ford delivered just wanting 40,000 units. The corporate says production capability is about 80,000 units a 12 months, and it goals to extend that to 130,000 units. The F-150 Lightning and E-Transit are also slated for production increases—Ford says it has “secured the batteries and raw material to scale production of all [EV] models in 2023.”
“We should not going to cede ground to anyone,” said Marin Gjaja, Chief Customer Officer, Ford Mach-E. “We’re producing more EVs to cut back customer wait times [currently up to 150 days], offering competitive pricing and dealing to create an ownership experience that’s second to none.”
Ford says it would do the precise thing for recent buyers who missed out on the worth cut: “Existing Mustang Mach-E customers awaiting delivery of their vehicle will mechanically receive the adjusted price.” Customers who took delivery after January 1, 2023 will receive “a non-public offer” from Ford.
Gjaja confirmed that Ford’s recent prices are a response to Tesla’s round of cuts, and to the worth caps included within the recent EV tax credit rules. “Obviously, our competitors are also adjusting their prices,” he said. “We’re having to reply.”
It’s not all beer and skittles at Ford lately. On a recent call with investors, CEO Jim Farley candidly described a number of the missteps Ford made because it brought the Mach-E and F-150 Lightning into production. Then, the corporate was forced to temporarily suspend production of the Lightning attributable to a battery problem.