Ford follows Tesla price cuts by taking up to $5,900 off Mustang Mach-E

Ford Motor Co. on Monday said it would reduce the price of the 2023 Mustang Mach-E crossover by $600 to $5,900, depending on the trim, as it boosts production in hopes of solidifying its status as the nation's No. 2 electric vehicle maker.

The price cuts come shortly after Tesla Inc., by far the U.S. EV sales leader, announced price cuts of up to $13,000 on the Model Y crossover, igniting a surge in demand.

"We have to compete," Marin Gjaja, chief customer officer for Ford's EV unit, told Automotive News this weekend at the NADA Show in Dallas ahead of Ford's announcement. "It's a competitive marketplace, and it just got a lot more competitive because of what Tesla did. We're not going to cede ground to anyone."

Ford said it plans to build 130,000 Mach-Es globally this year, 67 percent more than the 77,959 it produced in 2022.

The largest price cut comes on the GT extended-range model, which will be $65,495, down from $71,395 including shipping.

The price of the California Route 1 electric all-wheel drive extended range version are falling by $5,580 to $59,495.

The Premium rear-wheel drive standard range trim is now $52,495 after a $3,980 cut, while the Premium eAWD standard range trim is $55,495 after $3,680 decrease.

The Select RWD standard range price is falling by $900 to $47,495, and the Select eAWD standard range price is dropping $600 to $50,495.

Ford said it's decreasing the price to upgrade to an extended-range battery by $1,600 to $8,600. Prices for the Nite Pony appearance package and GT performance package are remaining the same.

Ford also said Mach-Es ordered between Jan. 30 and April 3 are eligible for special rates through Ford Credit as low as 5.34 percent.

The automaker said existing Mach-E customers awaiting delivery of their vehicle automatically will receive the adjusted price. It said it would reach out directly to customers who already have a Mach-E they bought this year.

Gjaja told Automotive News the Mach-E is not profitable, although the automaker was greatly benefiting from the crossover and other first-generation EVs because they are drawing new customers to the brand and helping the company better hone software and battery technology.

"Mustang Mach-E is not profitable and it's not going to be profitable, although by trim series it does vary a little bit," he said. "We'd like to be more profitable, and we're working furiously to get the costs out of these vehicles."