Ford said on Monday that it has boosted production and reduced pricing for its all-electric Mustang Mach-E crossover, making it the latest carmaker to enter an EV price battle initiated by Tesla.
According to Ford, prices for the Mustang Mach-E have dropped by between 1 and 8 percent, depending on the trim level, now that the company’s new electric vehicle (EV) supply chain is up and manufacturing is “substantially growing.”
We will not give any ground to our opponents. “We are manufacturing more EVs to minimise customer wait times, delivering competitive pricing, and aiming to provide an ownership experience that is second to none,” said Marin Gjaja, Ford Model e’s chief customer officer. According to the company’s CEO, “Our customers are at the core of everything we do, and as we continue to produce thrilling and exciting electric cars, we will continue to push the limits to make EVs more accessible to everyone.”
The firm said that the new, cheaper costs apply to both new and existing clients who are currently awaiting delivery of their car. Ford has promised to get in touch with everyone who bought a Mustang Mach-E after January 1, 2023 and has already taken delivery of their car. This is an obvious attempt to set the company apart from Tesla, a direct competitor. Some recent Tesla purchasers have requested price reductions or credits as a result of the company’s price cuts. This is especially true in China.
At least four times in the last several months, Tesla has provided discounts or credits on its cars, sparking what many in the industry are calling an electric vehicle pricing war. In October, Tesla announced price reductions in China of up to 9% on the Model 3 and Model Y, marking the beginning of the current trend. In January, Tesla slashed prices by up to 20% in North America and by roughly 14% in China.
In addition, the corporation has reduced prices in an effort to attract customers in the United States and Canada. In the United States, Tesla customers may get a $3,750 discount on a Model Y or Model 3 if they scheduled delivery by the end of 2022. According to the automaker’s website, the price cut was increased to $7,500 in the last week of the year.
Pressure has been applied to the industry as a whole as a result of Tesla’s move to lower the prices of its EVs, which some experts have argued was due to weakening demand. With one of the industry’s largest profit margins, Tesla can afford to try new pricing strategies. It also has the most EV sales.
As a result of these two considerations, most of the manufacturers that are trying to compete with Tesla will reduce the pricing of their own EV vehicles as well.
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