Ford reduces prices on electric Mustang as demand softens for premium EVs

Ford is slashing prices on its all-electric 2023 Mustang Mach-E by up to $8,100 as part of efforts to clear inventory and better compete with Tesla and its increasingly affordable EV lineup.

The total market share of new EV sales has seen a significant increase, reaching nearly 8% in the U.S. in 2023. However, as market share expands, the consumer base has shifted from early adopters to the early majority, a group less inclined to pay a premium for EVs, according to Ford CFO John Lawler in an interview with TechCrunch earlier this month.

These price reductions come after the Mach-E lost eligibility for a $3,750 tax credit, resulting in a 51% decline in sales of the all-electric SUV in January compared to the same month in 2023. Overall EV sales also experienced an 11% decrease from January last year.

The new prices, previously reported by the Detroit Free Press and distributed to Ford’s network of dealers, have been confirmed by the automaker to TechCrunch. The discounts apply solely to model year 2023 Mustang Mach-E vehicles and range from $3,100 to $8,100. Additionally, Ford Credit is offering several deals, including 0% financing for 72 months for qualified buyers and a $7,500 cash incentive for lessees. This extra incentive is on top of the tax credit already passed on to consumers by Ford Credit.

In an emailed statement, Ford spokesperson Marty Günsberg stated, “The Mustang Mach-E is America’s No.2 EV SUV in 2023 and Ford is America’s No.2 EV brand. We are adjusting pricing for MY23 models as we continue to adapt to the market to achieve the optimal mix of sales growth and customer value.”