Ford’s EV Price Reductions: Balancing Sales Growth and Quality

Photo Source: Ford

Since its introduction in the 2021 model year, the Ford Mustang Mach-E has drawn the attention of a wide spectrum of consumers. With no tailpipe emissions, engaging driving performance, and over-the-air software updates on a massive center touchscreen, the Mach-E drives and looks like a car of the future. Nonetheless, electric vehicle production in the United States is facing headwinds from weakening demand. 

On February 20, 2024, American legacy automaker Ford lowered the prices of its 2023 Mustang Mach-E electric SUV between $3,100 and $8,100 depending on the trim, effective immediately, according to a pricing chart the brand sent to its dealer network. The details were released less than a day after cutting the electric SUV’s pricing in Canada. Additionally, the Blue Oval announced new bonus cash incentives on select F-150 Lightning variants. 

Effects on the Mustang Mach-E

Ford’s price cuts for its popular 2023 Mustang Mach-E enabled the manufacturer to offer a sub-$40,000 MSRP (excluding $1,800 destination fee) with the entry-level Select rear-wheel drive trim. As such, customers can now obtain the base trim with a 72 kilowatt-hour battery and 226-mile EPA range for only $39,895 MSRP (excluding destination fees). Meanwhile, the Premium all-wheel drive standard range trim equipped with the same battery pack now sells at $45,895 MSRP (excluding destination fees).

It is evident by the chart provided by Ford that the brand gave the higher price cut of $8,100 to the electric SUV’s more expensive versions, including the Premium rear-wheel drive (Extended Range), Premium all-wheel drive (Extended Range), and the California Route 1 all-wheel drive.

Indeed, a spokesperson for Ford shared details of the lower prices for the Mustang Mach-E, stating, “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.”

Moreover, Ford Mustang Mach-E customers can benefit from a $7,500 cash incentive when they lease through Ford Credit. That is in addition to the $7,500 federal tax credit for electric vehicle leases Ford passes on to its customers–meaning buyers in the United States could lease a Mach-E for up to $13,000 off MSRP. 

Effects on the F-150 Lightning

Apart from the Ford Mustang Mach-E price cuts, the Blue Oval also launched new bonus cash incentives for the 2023 F-150 Lightning. To clarify, the electric pickup’s Lariat, XLT, and Pro variants offer additional retail cash bonuses of up to $12,500 apart from its eligibility for the $7,500 federal tax credits in the United States. Moreover, Ford offers a red carpet lease for the electric truck. The XLT trim benefits from a $1,500 red carpet lease cash, $5,000 for the Lariat, and $7,500 for the Platinum.

Hopeful Results

Ford’s Mustang Mach-E lost access to the federal tax credit this year (2024) due to the Inflation Reduction Act’s more stringent battery sourcing requirements. Thus, the price cuts enabled the automaker to stay competitive with popular models like the Hyundai Ioniq 5 and the Tesla Model Y in terms of MSRP. 

It is also worth noting that Ford hit record-breaking electric vehicle sales in 2023. The F-150 Lightning sales surged 55 percent, while the Mustang Mach-E grew three percent. That said, the price cuts and incentives are likely part of the brand’s efforts to boost its 2024 first quarter sales. It might be essential for the company to empty its 2023 Mustang Mach-E inventory to focus on the 2024 version, its latest offering in the market.

If the slash in prices has piqued your interest, please come visit Sunrise Ford. We are here to assist you with any financial help, needs, or suggestions to make paying for a vehicle easier. Stop by and see what we can do for you right now.