The Tesla-fueled electric car price war is gaining momentum. In response to the world’s largest electric car manufacturer, American competitor Ford is lowering the price of its Mustang Mach-E SUV by up to $5,900. The second-largest U.S. automaker also announced it would significantly increase production of the Mach-E.
Ford is cutting prices for various versions of the Mach-E in the US by up to eight percent, and by nearly 20 percent for the longer-range model. Cheaper models get smaller price cuts between $600 and $900. It is currently unclear whether prices will also be reduced in Europe.
Ford boss Jim Farley said on Twitter that the move would reduce customer wait times. “With the increased production, we reduce costs, which allows us to share the savings with customers.” Existing customers waiting for their Mustang Mach-E to be delivered will also receive the price reduction.
Electric car prices under pressure
A few months ago, Mercedes in China had to lower the price of its electric luxury sedan EQS. At the beginning of January, Tesla also announced that it would significantly reduce the prices of two bestsellers in Europe and the US. Tesla had previously cut prices in China, South Korea, Japan, Singapore and Australia, in part to reduce unusually high inventories. Tesla and Ford are now dropping prices to boost demand, which fell short of expectations last year.
This increases the pressure on the competition to follow. A price war is looming for electric vehicles in the US, Dan Ives, an analyst at investment bank Wedbush Securities, wrote on Twitter.
(t-online/oli)
Source: Watson
I’m Ella Sammie, author specializing in the Technology sector. I have been writing for 24 Instatnt News since 2020, and am passionate about staying up to date with the latest developments in this ever-changing industry.
