Ford Motor Company (NYSE:F) announced Tuesday that the American automaker is cutting prices on its Mustang Mach-E electric vehicle and reopening orders after a series of price cuts by rival automaker Tesla Inc (NASDAQ:TSLA).
Ford said it is cutting most Mach-E prices by $3,000 or $4,000 depending on the version. Last month, the federal EV tax credit for the Mach-E fell in half to $3,750 from $7,500 after new battery sourcing requirements took effect.
Ford last announced it was cutting prices of the Mach-E by $600 to $5,900 in January, weeks after Tesla announced similar price cuts.
Ford also said that the company is increasing the range for standard range battery models as it increases production in the second half of the year. Their plant in Mexico where the Mach-E is assembled recently went through a series of upgrades to support a ramp-up in production in the second half of this year. As well as upgrades to improve the Mach-E’s battery range.
"We continue to find ways to improve the value of the Mustang Mach-E," Marin Gjaja, chief customer officer for Ford Model e, said in a statement. "Upgraded BlueCruise rolling out for new and existing Mustang Mach-E owners, increased range and faster DC charging times on standard range models show how we are relentlessly improving our products for our customers."
EV giant Tesla raised prices by up to $290 in Canada, China, Japan and the United States, its website showed on Monday, after having slashed prices on its top-selling vehicles several times since the start of the year.
The hike was Tesla's first on its two top-selling models at the same time in multiple markets. However, prices across its lineup are still much lower than they were in January, after a round of discounts.
Shares of F and TSLA are down 2.94% and 1.07% in mid-day trading on Tuesday.