Cheaper in the future: Ford is significantly reducing the prices for the Mustang Mach-E electric SUV
Photo: JIM LO SCALZO/EPA
A few weeks after Tesla lowered the prices for its electric cars by up to 20 percent worldwide, its competitor Ford is following suit in the USA.
The Wall Street Journal reports that Ford is now charging up to $5,900 less for its hopeful electric crossover SUV Mustang Mach-E, depending on the model.
Ford shares fell about 2 percent at the start of trading on Monday.
"We're not going to lose ground to anyone," commented
chief customer officer for Ford's electric vehicle business. The company is keeping its prices competitive and reducing customer wait times.
Mach-E customers who are waiting for the delivery of their ordered car should automatically receive the reduced price.
Ford also produces an all-electric pickup truck, the F-150 Lightning, and an all-electric van.
The US carmaker did not comment on possible price reductions for these models.
Tesla recently slashed the prices of some of its vehicles worldwide by as much as a fifth to attract new buyers.
hinted last week that the price cuts had led to an increase in orders, according to the WSJ.
Numerous Tesla buyers had expressed their anger and demanded that the reduced prices be granted to them afterwards.
The price reduction makes the Mach-E more attractive to potential buyers in two ways.
This means that at least one version of the Mach-E is likely to qualify for the $7,500 tax credit because the selling price of the electric car does not exceed the $55,000 credit limit.
Analysts no longer rule out a "price war" for electric cars
"Now a small EV price war is beginning in the United States," commented
, analyst at Wedbush Securities, on Ford's move on Twitter. Tesla's move is "a serious blow to the prospects of competing electric car models. And the Mustang Mach-E is in direct competition with Tesla's Model Y," agreed
, analyst at CFRA Research.
, auto analyst at Bank of America Merrill Lynch, no longer rules out a broader “price war” in the auto industry for electric cars.
Murphy wrote in a note that many car companies are losing money with e-vehicles and are now looking for ways to build these models even more efficiently.
According to earlier information, Ford plans to significantly increase Mach-E production to 130,000 vehicles.
In November, Ford boss
(60) went one step further and stated that the group wanted to increase global e-car production to 270,000 vehicles by the end of 2023.
Ford manufactures the Mach-E in Mexico and China.