Ford followed Tesla’s lead and lowered the price of the electrified Mustang Mach-E.


Ford followed Tesla’s lead and lowered the price of the electrified Mustang Mach-E. A few weeks after the market leader Tesla announced comparable plans for its electric vehicles, Ford Motor Company is raising manufacturing of its electric Mustang Mach-E crossover while simultaneously lowering pricing.

The automobile manufacturer in Detroit announced on Monday that it would reduce the cost of its Mach-E electric vehicle, which is analogous to Tesla’s Model Y, by an average of approximately $4,500, depending on the model. The price decreases vary from $600 to $5,900, far lower than the price cuts that Tesla made earlier in January on its Model Y, which were up to $13,000.

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Even though there was fear that the decision would cut some earnings, financial experts and investors on Wall Street overwhelmingly praised Tesla for lowering its prices to stimulate demand and boost sales. Analysts anticipated that Tesla’s price decreases would put other automakers under pressure to reduce their costs.

According to Marin Gjaja, chief customer officer of Ford’s electric vehicle company, the price decreases will imply that not all Mach-E vehicles, depending on the trim, will be the profitable per-unit basis. This information comes from Ford’s electric vehicle business. According to him, the yearly output of Mach-E vehicles is anticipated to expand from 78,000 to 130,000 units.

During a media briefing, Gjaja stated: “We are responding to changes in the marketplace,” He referred to new federal EV subsidies and Tesla’s price decreases. “We must respond because we are looking to maintain our position in the market and remain competitive.”