Ford will reduce the price of the Mustang Mach-E, following Tesla’s lead

Ford Motor Co cut the price of its electric crossover SUV Mustang Mach-E by up to $5,900 per vehicle on Monday, just weeks after rival Tesla Inc slashed prices on its electric vehicles globally by up to 20%.

Ford shares fell 2.9% to $12.89 in above-average trading. Tesla dropped 6.3%. The move comes as electric vehicle manufacturers are under pressure to respond to Tesla’s price cut.

Ford had already planned to increase Mach-E production at its Mexico plant to 130,000 vehicles this year, up from 78,000 in 2022, and announced in November that it was accelerating Mustang Mach-E production and aiming for a global annual production rate of 270,000 by the end of 2023, including China production. Ford manufactures the Mach-E in Mexico and China.

Ford is slashing prices on various Mach-E models by up to 8%, as well as the price of the extended range battery by about 19%. The lowest-priced models are getting smaller price cuts ranging from $600 to $900. Ford’s price cuts only affect prices in North America.