The Ford Mustang Mach-E just got a lot more affordable after the automaker announced a significant price cut for the 2023 model year. The new adjustments will bring at least one version of the Mach-E under $40,000 for the first time.
The Mustang Mach-E was the second best-selling electric SUV in the US in 2023. But to get there, Ford had to wage a brutal price war with Tesla, now entering its second year. The Elon Musk-led company's market share has declined quarterly in the United States, but Tesla still controls over 50 percent of the electric vehicle market.
The price cuts also reflect the new reality that electric vehicle sales are no longer growing as quickly as in previous years
The price cuts also reflect the new reality that electric vehicle sales are no longer growing as quickly as in previous years. Demand is weakening as more customers look for the right price and more evidence that the charging infrastructure is working reliably.
Ford spokesman Martin Gunsberg said the new pricing was intended to “align with the market to achieve the optimal mix of sales growth and customer value.”
Here's the breakdown of the new Mustang Mach-E's pricing compared to the previous MSRP.
The Premium trims with extended-range batteries, both rear-wheel drive and four-wheel drive, receive the largest discounts of $8,100 off the sticker price. And the new price of the Select RWD trim will be just under $40,000, which appears to be a significant milestone for Ford's flagship electric vehicle.
Ford is also adding new incentives for leased vehicles, offering a $7,500 Red Carpet Lease Cash Incentive when the vehicle is leased through Ford Credit, the company's internal finance arm. This is in addition to the federal electric vehicle tax credit that Ford Credit passes on to consumers, resulting in lower monthly payments.
The Mustang Mach-E is only eligible for the $7,500 electric vehicle tax credit if it is leased. The electric vehicle is not currently eligible for the credit for customers looking to purchase or finance the Mach-E due to its battery supply chain.