Ford To Drop Prices of Mustang

(NewsReady.com) – Ford is currently challenging Tesla to become the number one electric vehicle (EV) company. In April 2022, CEO Jim Farley made it clear that he intends to challenge Elon Musk’s company and take the spot as the industry’s leader. The 120-year-old carmaker has recently taken a step to try to meet that goal.

On January 30, Ford Motor announced it is cutting the price of its electric Mustang Mach-E. The automaker is going to reduce the prices from about $600 to $5,900 (an average of roughly $4,500), depending on the model. According to CNBC, the Mach-E is comparable to Tesla’s Model Y, which recently saw its price cut by up to $13,000.

WATCH: Ford to cut prices of Mustang Mach-E, following Tesla's lead https://t.co/OwZOey1xa9 pic.twitter.com/sNn6w9jhdH

— Reuters Business (@ReutersBiz) January 30, 2023

In a tweet, Farley explained Ford wants to make EVs accessible to more people. The company is going to increase production as well. The CEO said the moves will “shorten customer wait times” and allow Ford to “share [the] savings with customers.”

At @Ford, we want to make EVs more accessible, so we’re increasing #MustangMachE production & reducing prices across the Mach-E lineup. Scaling will shorten customer wait times. And with higher production, we’re reducing costs, which allows us share these savings with customers.

— Jim Farley (@jimfarley98) January 30, 2023

Kelley Blue Book reported the decision to slash prices might also have something to do with the IRS’ decision to give a $7,500 tax rebate to those who purchase some electric vehicles. In order to qualify, a sedan must cost $55,000 or less, and an SUV has to be priced at $80,000 or below.

The tax agency also decided to change its definition of an SUV, so now the Model Y and Mach-E models are both considered sedans, which means they must cost $55,000 or less to qualify. The decision to reduce the price of the vehicles brings several Mach-E models under the rebate threshold. That could create an incentive for people to purchase more of them and boost the company’s sales, helping them to reach Farley’s goal.

Customers who have already ordered Mach-Es will receive offers from Ford to refund the difference between what they paid and what the vehicles now cost.