Production of domestic EVs has lagged the high hopes of their launches, but Ford says that in response to an easing of supply constraints, it is cutting prices on the Mustang Mach-E by as much as $5,900, with the expectation of much higher sales than in the past.
Price cuts themselves may not be of particular interest to those who aren’t shopping for an EV right now. But the signal of these cuts that happier days are ahead is welcome to anyone awaiting the industry shift toward 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 Marin 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.”
This is especially good news for anyone awaiting delivery of their Mach-E order because the price cut applies to those cars too. The cut is even retroactive for those who already bought a Mach-E this year. "We want our customers to know they made the right decision by choosing a Mustang Mach-E, and we’ll continue to play a proactive role in doing the right thing for those joining the Ford family,” said Gjaja.
While Ford is happy to point out that the Mach-E was the #3-selling SUV in the U.S. last year, that total still only amounted to 78,000 vehicles according to Ford CEO Jim Farley on Twitter. Greater availability of components and the price cut will boost sales to 130,000 vehicles in 2023, Farley said. By the end of the year, Ford has said that it will build the Mach-E at a volume of 270,000 cars per year.
Mach-E is a particularly important vehicle for Ford, because, unlike those models that hold onto die-hard Blue Oval drivers, two-thirds of Mach-E buyers come from outside the brand.
AutoPacific analyst Robby DeGraff cautions that even with the price cuts, it will be hard to configure a Mach-E so that the bottom line comes in beneath the $55,000 threshold for the federal tax credit. "The Mustang Mach-E just got a bit more affordable depending on which trim you fancy, but if you’re wanting the optional Extended Range Battery pack that in some configurations delivers range north of 300 miles per charge, good luck begging the IRS for a federal EV tax credit," he said. "Oddly and puzzlingly, the IRS (and EPA) classify the Mustang Mach-E as a 'Passenger Car' even though clearly the vehicle was designed to be and is marketed as a crossover SUV. The logic for this classification is antiquated and doesn’t really benefit the consumer, actually, because in order for a 'Passenger Car' to be eligible for a $7,500 federal EV tax credit, its MSRP cannot climb north of $55,000, a rather low and honestly unfair price limit."