Ford cuts Mustang EV prices after Tesla cuts prices

On Monday, Ford Motor Co cut prices of its electric crossover SUV Mustang Mach-E by as much as $5,900 per vehicle, weeks after rival Tesla Inc slashed prices on its electric vehicles by as much as 20%.

Ford's shares were down 2.4% before the bell. Tesla was flat.

Ford said it was raising Mach-E production. Ford sold 39,458 Mach-Es in the United States last year, up from 27,140 in 2021.

Ford is cutting prices by up to 8% on various versions of the Mach-E, as well as cutting the price of the extended range battery by about 19%. The lowest-price models are getting smaller $600 to $900 price cuts.

According to Ford Chief Executive Jim Farley, scaling will shorten customer wait times. With higher production, we are reducing costs, which allows us to share these savings with customers. Ford said existing Mustang Mach-E customers who waits for delivery of vehicles will automatically get the price cut.

Ford cut Mustang EV prices in response to Tesla's price cut. Dan Ives, an analyst at Wedbush Securities, said on Twitter that a mini price war is about to begin with EVs in the US with Tesla slapping across the bow on price cuts.