Ford has reduced the price of its Mustang Mach-E electric vehicle by up to 8% (up to $5,900), with the extended-range battery dropping by around 19%.
According to Reuters, the entry-level models are now around $600 to $900 less expensive, and people who are currently waiting for Ford to deliver a Mach-E will automatically receive the price cut.
At least one variant is once again eligible for the $7,500 federal tax credit for EVs with an MSRP of $55,000 or less.
SUVs, vans, and pickup trucks with a maximum MSRP of $80,000 are eligible for the credit, but the Internal Revenue Service does not classify the Mach-E as an SUV.
Ford raised the price of the Mach-E for new orders in August by between $2,600 and $8,000 over the 2022 trims.
The price increases were attributed to “significant material cost increases, continued strain on key supply chains, and rapidly evolving market conditions,” according to the company. However, it appears that these issues have subsided 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.”
In 2022, Ford will produce 78,000 Mach-E vehicles. It hopes to increase production to 270,000 units per year by the end of this year.
With the help of new lithium iron phosphate battery packs, the company hopes to reach a total EV production rate of 600,000 by late 2023.
The move comes after Tesla reduced the prices of its electric vehicles by up to 20% earlier this month.
Following the reduction, the five-seat Model Y Long Range became eligible for the tax credit, making it $20,500 (more than 30%) less expensive.