Ford announces a price reduction for its electric Mustang

The announcement comes a week after Tesla did the same for its most popular models, helping to double demand.

Ford announced yesterday a price reduction on one of its most popular models, the Mustang Mach-Ethe electric version of the classic from the brand based in Dearborn, Michigan. The reduction will be 8.8% in some of its versions, an announcement that comes a week after Tesla did the same with its most popular cars. Both companies hope it will be enough of an incentive to attract consumers amid a slowdown in economic activity in the United States. The fear of a possible recession in the coming months is beginning to be felt in consumption.

To achieve the reduction, the Michigan giant will try to offset the reduction with the sale of electric vehicles over the Internet and sacrifice margins to remain competitive. In an apparent hint to Tesla, Marin Ghahathe head of Ford’s clientele, indicated that they do not plan to “cede ground to anyone”, after the brand directed by Elon Musk He would lower the price of his Model Y by $13,000, from $65,990 to the current $52,990.

The Mustang Mach-E, Ford’s first serious bet in the electric arena, is now available for $46,000 in its cheapest version, although it can go up to $60,000 in the best-equipped model. The discounts raised by Ford will mean a reduction of between 600 and 5,900 dollars, depending on the model, a car that went on the market at the end of 2020 and that is a direct competitor to the Model Y.

Ford has also pledged to ramp up production of its battery-powered Mustang, after saying last year it was sold out and delaying launches in other markets to try to catch up with US demand. .

The discounts will begin to apply as of today, news that did not make a dent in the course of their titles in the market. They closed 2.86% in red, in line with the general trend of the day. Even so, Ford is confident that the effect in the coming weeks will be similar to that of Tesla, which has experienced a significant increase in demand after announcing the cuts.

“Price really matters,” Musk said during a call with investors last week after presenting record results in the final quarter of the year. The South African confirmed the increase in sales after lowering prices. “Currently we are seeing orders at almost double the production rate,” he said, a fact that has contributed to the recovery of his battered shares. Last year, Tesla lost 65% of its value on the stock market, but in just one month it has recovered almost all the lost ground, 54%. This despite leaving 6% in the session on Monday.

Although its disadvantage with Tesla is still enormous, Ford ranked second in sales of electric vehicles in the US during 2022. Its share was 7.6% compared to 65% that still represents the Musk revolution.