Even before it reaches dealerships this fall, the Ford Mustang Mach-E is getting a price cut of up to $3,000.
It's a testament to the looming competitiveness of a segment — battery-electric crossovers — that barely even exists at the moment. Ford, Volkswagen, Hyundai and Nissan are joining Tesla's Model X and Model Y by shifting their electrification focus from cramped compliance cars to more-appealing crossovers and SUVs that hit at the heart of today's internal-combustion market.
"It's the next frontier," Karl Brauer, executive analyst at ISeeCars, told Automotive News. "EVs were always kind of little econoboxes that happened to be powered by electric motors.
"But I think a lot of people started to realize, these vehicles are never going to have a chance at going mainstream unless they move beyond the traditional small car and into larger crossovers that have a lot of compelling features."
Unlike earlier electric vehicles, it's not a matter of weaker-than-expected demand. Reservations for the top-end Mach-E First Edition sold out in days and quickly filled again after Ford doubled the production allocation. Ford says the sticker reductions will help the vehicle "remain fully competitive in a segment that is seeing dynamic price changes."
Volkswagen soon will launch its compact ID4 with a starting price roughly $2,000 less than that of the Mach-E and a base model that can go 20 more miles on a charge than what Ford will offer. Tesla this year slashed Model Y prices by $3,000, bringing the crossover's least expensive version to less than $50,000. Next year, the Hyundai Ioniq 5 and Nissan Ariya will further saturate the market with products featuring similar price points.