Ford’s big price cuts on 2023 Mustang Mach-E follow Tesla’s cuts
The 2023 Ford Mustang Mach-E costs up to $5,900 less, Ford announced Monday, reversing some of last year’s price increases on the popular electric crossover.
Ford will also nearly double production of the reimagined electric pony car this year, boosting production from 78,000 to 130,000 units, a Ford spokesperson confirmed. That’s short of CEO Jim Farley’s announced target of 200,000 Mach-E sales annually, but on the way.
The 2023 Mustang Mach-E Select with the Standard Range 70-kwh battery pack only drops $900 to $45,995 (excluding the destination fee), or just $600 on the dual-motor Select to $48,995. Ford raised the mandatory destination fee again, bumping it $200 in August and $200 more now to $1,500.
The popular Premium trim with RWD and the Standard Range battery pack costs $50,995 (excluding destination), which is a $3,980 price cut; the Premium AWD Standard Range costs $53,995, which is a $3,680 price cut. All of these models qualify for the new federal EV tax credit of $7,500.
The California Route 1 ($57,995) and GT ($63,995) Extended Range models do not, because they exceed the $55,000 price threshold for cars set by the Inflation Reduction Act that was passed last year. The GT Extended Range model has the largest price cut of $5,900.
Ford said it shaved $1,600 off the Extended Range 91-kwh battery pack to $7,000, which is optional on Premium grades. The Premium with the Extended Range thus would not qualify for the credit.
After more than a year of successive price hikes for new cars, price relief appears to be happening, at least for electric vehicles. Ford’s price cuts follow even steeper price cuts of up to 20% by rival electric automaker Tesla, who cut the Model Y crossover by about $14,000 on Jan. 13. Ford recognized its new EV supply chain as a source for the price cuts.
The driving force might have as much to do with that or a taming of inflationary forces as clarity on new federal EV tax credit rules finalized under the Inflation Reduction Act. At present, owners can claim a tax credit of up to $7,500 on electric vehicles with a price cap of $55,000 for cars, such as how the Mustang Mach-E is classified, and $80,000 for pickup trucks and SUVs.