Ford cut the price of its all-electric Mustang Mach-E by as much as $4,000 while adding range and other features — the latest move in an EV price war sparked by Tesla.
Ford said Tuesday it is reopening its order book and preparing to ramp production of the vehicle in the second half of 2023, following factory upgrades. Ford expects to produce 130,000 units at the plant in 2023. By the end of the year, its annual production run rate will be over 200,000, according to a spokesperson.
This is the second time since the beginning of the year that Ford has cut the price of the Mustang Mach-E.
The cuts come as competition for EV buyers heats up. It also follows a quarter of lagging Mustang Mach-E sales, which fell 20% in the first quarter from the same year-ago period.
Ford reported Tuesday afternoon — hours after announcing the price cuts — that it earned $1.8 billion in net income in the first quarter, a rebound from the $3.1 billion loss in the same quarter last year that was driven by sales of its legacy F Series pickups, premium models and fleet sales. Ford reaffirmed its guidance for full-year adjusted earnings of between $9 billion and $11 billion and about $6 billion in adjusted free cash flow.
Shares fell 2.16% in after-hours trading despite the company's positive quarterly result.
Ford cut the cost of its two cheapest models by $3,000. The rear-wheel drive standard range Mustang Mach-E will now start at $42,995 and have an EPA estimated range of 250 miles. The all-wheel drive version, which starts at $45,995, will have a range of 226 miles. The largest price reduction — about $4,000 or nearly 8% — was made to the premium standard range and GT all-wheel drive extended range models.
The standard range models Mustang coming off the line will now be equipped with lithium iron phosphate (LFP) batteries, according to Ford. The models will also be able to DC fast charge to 80% battery capacity from 10% in 33 minutes, a five-minute reduction when compared to previous standard range models, according to Ford.
The new models will also come with an upgraded version of its hands-free advanced driver assistance system known as BlueCruise. The 1.2 version of BlueCruise has the ability to make hands-free lane changes when the driver taps the turn signal and will also re-position, or nudge, the vehicle away from bigger vehicles while keeping it in the lane. Buyers will get 90 days of complimentary access to the BlueCruise technology. Once the trial ends, customers can activate the system via a subscription service.
Ford isn't the only automaker cutting prices of its EVs. Tesla kicked off the EV price war last fall and has continued to make its models more affordable in the U.S., China and Europe.