Ford cuts Mustang Mach-E prices for second time in 4 months

The latest price reductions — ranging from $700 to $3,700, depending on trim level — come as Tesla continues to lower prices on its own vehicles.

May 02, 2023 10:33 AM

DAVID PHILLIPS

Mach-E sales fell 20 percent in the first quarter to 5,407. The automaker had taken downtime at the Mach-E plant earlier this year as it prepares to boost capacity.

For the second time this year, Ford Motor Co. is reducing the price of the Mustang Mach-E by as much as 7 percent as it seeks to boost production and challenge Tesla Inc. for electric vehicle sales leadership.

The latest price reductions — ranging from $700 to $3,700, depending on trim level — come as Tesla continues to lower prices on its vehicles. Ford CEO Jim Farley has called Tesla's ability to frequently alter pricing in response to market demand a competitive advantage that would force rivals to follow suit. Ford last lowered Mach-E prices in January, following cuts by Tesla.

"You have to be able to respond quickly," Farley said in April of Tesla and its CEO Elon Musk. "That agility he is building is super important for everyone."

2023 Mustang Mach-E

Model	Former MSRP	Updated MSRP	Change
Select RWD Standard Range	$47,495	$44,795	$2,700
Select AWD Standard Range	$50,495	$47,795	$2,700
California Route 1 AWD Extended Range	$59,495	$58,795	$700
Premium RWD Standard Range	$52,495	$48,795	$3,700
Premium AWD Standard Range	$55,495	$51,795	$3,700
GT AWD Extended Range	$65,495	$61,795	$3,700

Options	Former MSRP	Updated MSRP	Change
Extended Range Battery for Premium	$7,000	$7,000	$0
Mustang Nite Pony Package	$800	$800	$0
GT Performance Edition Package	$6,000	$5,000	$1,000
BlueCruise 1.2 (3 years included)	$1,900	$2,100	$200
Comfort Package Lite	N/A	$1,500	$0

Note: Updated MSRP includes $1,800 destination fees.

Source: Ford Motor Company

The largest price cuts to the Mustang Mach-E come on the extended-range GT model and on the standard-range, rear-wheel-drive and all-wheel-drive Premium models.

With shipping, the extended-range GT — the most expensive trim level — now starts at $61,795, down from $65,495. Shipping charges on all models have increased to $1,800 from $1,500.

The standard-range, rear-wheel-drive Premium trim level is now $48,795, down from $52,495, while the standard-range, all-wheel-drive Premium version is $51,795, down from $55,495. Both include shipping charges.

The price of the extended-range, all-wheel-drive California Route 1 model is falling to $58,795 from $59,495. The price of the standard-range, rear-wheel-drive Select version is falling to $44,795, while the price of the standard-range, all-wheel-drive Select model is dropping to $47,795. All three include shipping.

The latest price cuts make some models cheaper than what they were before Ford raised prices in August 2022, citing at the time rising material costs and supply chain constraints.

Last month, the federal EV tax credit customers could receive for the vehicle was cut in half to $3,750 following new battery sourcing requirements.

Mach-E sales fell 20 percent in the first quarter to 5,407. The automaker had taken downtime at the Mach-E plant earlier this year as it prepares to boost capacity.

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

On Tuesday, Ford also announced new features and an extended range for some models.

All standard-range Mustang Mach-E models will now offer lithium iron phosphate batteries, enabling all-wheel-drive configurations to gain 45 hp. This also improves the targeted EPA range estimate on both rear- and all-wheel-drive models. These models will also be able to charge faster, Ford said.

The standard-range, rear-wheel-drive Mustang Mach-E now will have an estimated range of 250 miles, while the all-wheel-drive model will have a range of 226 miles.

Ford has also added a new "try, then buy" option on its BlueCruise hands-free driver-assist technology, giving customers a free 90-day trial before charging for the feature. It recently updated vehicles with version 1.2 of the technology, which includes hands-free lane-changing capabilities and other features.

"We continue to find ways to improve the value of the Mustang Mach-E," Marin Gjaja, chief customer officer for Ford's Model e division, said in a statement. "Upgraded BlueCruise rolling out for new and existing Mustang Mach-E owners, increased range and faster DC charging times on standard range models show how we are relentlessly improving our products for our customers."