Tesla and Mustang Mach-E Pricing war in 2023
Ford’s automotive company is decreasing the price of its newly launched electric vehicle, Mustang Mach-E, by $6,000 to compete with the pricing reduction of Tesla.
This auto industry is also raising manufacturing of the Mach-E to shorten the delivery period to its customers as it is currently up to 150 days.
Ford decided to allot Mach-E at a discounted price to their pre-booking order customers and to reimburse the difference price to their old customers by providing “personal offers.”
At the start of January, Tesla began the pricing war with Ford and General Motors by introducing a 6%-20% discount on their newly launched vehicle models, Model Y and Model 3.
It is estimated that Elon Musk’s strategy of price cutting will benefit the company by $7 billion in 2023. Also, it will boost its market share and future customers. However, Ford’s Mach-E vehicle profit was wiped out in June 2022.
Another factor contributing to a price cut of Mach-E is the imposition of a new electric vehicles tax by the Biden Admin in consideration of the Inflation Reduction Act, which imposes a $7,500 EV tax.
CEO of Ford openly targets Tesla, and Dearborn automotive sells their EVs on similar strategies to Tesla, which irritates dealers.