On Monday, Ford cut prices for the Mustang Mach-E for the 2023 model year and increased production of the electric crossover SUV.
Prices have dropped across the board, though some versions are getting a bigger drop than others. The base Select rear-wheel-drive Standard Range model received a $900 reduction to $47,495, including the mandatory $1,500 destination charge. With all-wheel drive, the price cut is just $600, bringing the MSRP to $50,495.
Higher-end models get a much bigger price cut. The base price of the California Route 1 with all-wheel drive and the Extended Range battery pack drops from $5,580 to $59,495 with destination, while the Premium Standard lineup now starts at $52,495 with rear-wheel drive and $55,495 with all-wheel drive, a reduction. $3,980 and $3,680 respectively. Ford also dropped the price of the Extended Range battery by $1,600 to $7,000.
2023 Ford Mustang Mach-E
The all-wheel-drive Mach-E GT Extended Range gets the biggest price cut of $5,900, bringing the base price down to $65,495. However, the price of the GT Performance Package remains unchanged at $6,000, as does the $800 price of the Nite Pony Appearance Package.
Existing customers waiting to take delivery of the vehicle will automatically receive the lower price, and Ford will directly contact customers with sales dates after January 1, 2023, who already own their cars, the automaker said in a statement.
Notably, the structured price cuts put the Standard Range Mustang Mach-E below the latest federal electric vehicle tax credit limits $55,000 for passenger cars, even though Ford markets the Mach-E as a crossover SUV. The price of the Extended Range models still comes from the tax credit.
Ford is also ramping up production of the Mach-E. The automaker built 78,000 electric crossovers in 2022, but plans to build 130,000 by 2023, a Motor Authority spokesman said.
2023 Ford Mustang Mach-E
Ford said in a statement that the increase in production and the reduction in prices was made possible by a strengthened supply chain for electric vehicles. Ford and other automakers have blamed supply chain issues for a series of electric vehicle price hikes in 2022. Multiple price increases for the F-150 Lightning meant the pickup’s base price was 38.9% higher in December 2022 than at launch.
There are now signs that the rise in electric vehicle prices is easing. Earlier this month, Tesla cut prices across its entire product line, helping to cancel a series of price hikes the automaker had planned for 2022.