Ford is cutting prices of its Mustang Mach-E electric vehicle and reopening orders, the No. 2 US carmaker said on Tuesday, the second time it has reduced prices this year after price cuts by rival Tesla.
Ford said it is also increasing the range for standard-range battery models as it increases production of the electric crossover SUV in the second half of the year.
Prices for most Mach-E models were cut by $3,000 (R55,354) or $4,000 (R73,812) depending on the version or by as much as 7.8%, Ford said. The price of the Mach-E Premium rear-wheel drive version is dropping from $50,995 (R941,018) to $46,995 (R867,296).
Ford CEO Jim Farley told analysts Ford does not intend to pursue EV sales volume “at any cost”.
“We are not going to price just to gain market share.”
Farley's stance contrasts with Tesla CEO Elon Musk's statement last month that Tesla could cut profit margins on vehicle sales to zero and make up the difference through sales of software-enabled services.
Ford shares closed down 2.2% at $11.80 Tuesday and fell 1.5% in after-hours trading after it reported first quarter earnings.
Last month, the federal EV tax credit for the Mach-E fell by half to $3,750 (R69,206) from $7,500 (R138,440) after new battery sourcing requirements took effect.
Mustang Mach-E US sales fell 20% in the first three months of the year. Ford said on Tuesday shipments of the Mustang Mach-E were limited in the first three months of the year to make industrial changes that will nearly double manufacturing capacity.
In January, Ford cut prices of the Mustang Mach-E by as much as $5,900 (R108,906) per vehicle after hiking prices in August last year by $3,000 (R55,376) to about $8,000 (R147,679), citing supply-chain issues and higher material costs.
Ford said all standard range models will now be powered by lithium iron phosphate (LFP) batteries, which allows vehicles to gain an additional 45 units of horsepower and improves the targeted EPA range estimates.
On Monday Tesla raised prices in a range of up to $290 (R5,353) in Canada, China, Japan and the US after the company had slashed prices on its top-selling vehicles since the start of the year.
The hike was Tesla's first on its two top selling models at the same time in multiple markets, though prices across its line-up are much lower than in January after a round of discounts.
Ford cuts prices of Mustang Mach-E after Tesla moves
Image: Supplied
Ford is cutting prices of its Mustang Mach-E electric vehicle and reopening orders, the No. 2 US carmaker said on Tuesday, the second time it has reduced prices this year after price cuts by rival Tesla.
Ford said it is also increasing the range for standard-range battery models as it increases production of the electric crossover SUV in the second half of the year.
Prices for most Mach-E models were cut by $3,000 (R55,354) or $4,000 (R73,812) depending on the version or by as much as 7.8%, Ford said. The price of the Mach-E Premium rear-wheel drive version is dropping from $50,995 (R941,018) to $46,995 (R867,296).
Ford CEO Jim Farley told analysts Ford does not intend to pursue EV sales volume “at any cost”.
“We are not going to price just to gain market share.”
Farley's stance contrasts with Tesla CEO Elon Musk's statement last month that Tesla could cut profit margins on vehicle sales to zero and make up the difference through sales of software-enabled services.
Ford shares closed down 2.2% at $11.80 Tuesday and fell 1.5% in after-hours trading after it reported first quarter earnings.
Last month, the federal EV tax credit for the Mach-E fell by half to $3,750 (R69,206) from $7,500 (R138,440) after new battery sourcing requirements took effect.
Mustang Mach-E US sales fell 20% in the first three months of the year. Ford said on Tuesday shipments of the Mustang Mach-E were limited in the first three months of the year to make industrial changes that will nearly double manufacturing capacity.
In January, Ford cut prices of the Mustang Mach-E by as much as $5,900 (R108,906) per vehicle after hiking prices in August last year by $3,000 (R55,376) to about $8,000 (R147,679), citing supply-chain issues and higher material costs.
Ford said all standard range models will now be powered by lithium iron phosphate (LFP) batteries, which allows vehicles to gain an additional 45 units of horsepower and improves the targeted EPA range estimates.
On Monday Tesla raised prices in a range of up to $290 (R5,353) in Canada, China, Japan and the US after the company had slashed prices on its top-selling vehicles since the start of the year.
The hike was Tesla's first on its two top selling models at the same time in multiple markets, though prices across its line-up are much lower than in January after a round of discounts.
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