Ford Motor Co F-N on Monday cut prices of its electric crossover SUV Mustang Mach-E by as much as $5,900 per vehicle, weeks after rival Tesla Inc TSLA-Q slashed prices globally on its electric vehicles by as much as 20 per cent.
Shares of Ford were down 2.4 per cent before the bell. Tesla was flat.
Ford also said it was “significantly” 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 per cent on various versions of the Mach-E, as well as cutting the price of the extended range battery by about 19 per cent. The lowest-price models are getting smaller $600 to $900 price cuts.
Ford Chief Executive Jim Farley said 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.”
Ford said existing Mustang Mach-E customers awaiting delivery of vehicles will automatically receive the price cut.
“Ford just cut Mustang EV prices in response to Tesla’s price cut. Mini price war about to begin with EVs in the US with Tesla’s shot across the bow on price cuts,” said Dan Ives, an analyst at Wedbush Securities, on Twitter.