Ford to cut prices while 'significantly' increasing Mach-E production amid Tesla cuts

January 30, 2023 8:53 AM EST

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(Updated - January 30, 2023 9:06 AM EST)

Ford (NYSE: F) announced Monday morning that the American vehicle maker will “significantly” increase production of their Mustang Mach-E this year to help reduce customer wait times. The company also announced that they will be taking advantage of the streamlined costs to reduce prices across the board.

The Mustang Mach-E was the #3 EV model in the U.S. in 2022. The updated pricing is part of management’s plan to keep the EV competitive in a rapidly changing market. The move also hopes to strengthen Ford’s position as the #2 U.S. EV manufacturer as they continue to scale business.

The price reductions for the Mustang Mach-E vary by trim level and performance package. A standard Mach-E now starts at $45,995, down $900 from the former sticker price. At the highest end, the Mach-E GT with extended range now goes for $63,995, a $5,900 reduction from the previous price.

The announcement follows recent price cuts by Tesla (NASDAQ: TSLA). The EV maker recently cut prices by an average of about $4,500, depending on the model. Ford CEO Jim Farley has publicly set his sights on Tesla, vowing last spring to unseat Musk's car company as the top seller of electric vehicles.

“We are not going to cede ground to anyone We are producing more EVs to reduce customer wait times, offering competitive pricing and working to create an ownership experience that is second to none,“ said Maria Gjaja, Chief Customer Officer, Ford Model E. “Our customers are at the center of everything we do — as we continue to build thrilling and exciting electric vehicles, we will continue to push the boundaries to make EVs more accessible for everybody.”

Shares of F are down 2.56% in pre-market trading on Monday.

By Michael Elkins | [email protected]

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