Ford slashes Mustang Mach-E prices by up to $5,900

The company says it's passing cost savings along to customers.

Alex Wong via Getty Images

Ford has slashed prices of its Mustang Mach-E electric vehicle by up to eight percent (as much as $5,900), with the extended-range battery dropping in price by around 19 percent. The entry-level models are now around $600 to $900 less expensive, according to Reuters, which reported that people who are currently waiting for Ford to deliver a Mach-E will receive the price cut automatically.

At least one variant is again eligible for the $7,500 federal tax credit, which applies to EVs that have an MSRP of $55,000 or less. SUVs, vans and pickup trucks are eligible for the credit if they have a maximum MSRP of $80,000, but the Internal Revenue Service does not class the Mach-E as an SUV.

In August, Ford increased the price of the Mach-E for new orders by between around $2,600 and $8,000 compared with the 2022 trims. The company attributed the price hikes to "significant material cost increases, continued strain on key supply chains and rapidly evolving market conditions." However, it seems those issues have abated somewhat.

"At Ford, we want to make EVs more accessible, so we’re increasing Mustang Mach-E production and reducing prices across the Mach-E lineup," Ford CEO Jim Farley wrote on Twitter. "Scaling will shorten customer wait times. And with higher production, we’re reducing costs, which allows us [to] share these savings with customers."

Ford built 78,000 Mach-E vehicles in 2022. It hopes to ramp up production to an annual run rate of 270,000 by the end of this year. The company is aiming to reach a total EV production rate of 600,000 by late 2023 with the help of new lithium iron phosphate battery packs.

The move comes after Tesla slashed the prices of its EVs by up to 20 percent earlier this month. The five-seat Model Y Long Range became eligible for the tax credit after the cut, meaning that it's now $20,500 (over 30 percent) less expensive.