On Monday, Ford reduced prices for the Mustang Mach-E for the 2023 model year, and boosted production of the electric crossover SUV.
Prices dropped across the board, although some versions get bigger reductions than others. The base Select rear-wheel drive Standard Range model received a $900 cut to $47,495 including the mandatory $1,500 destination charge. With all-wheel drive, the price cut is only $600, bringing the MSRP to $50,495.
Higher-level models get much bigger price cuts. The base price of the California Route 1 with all-wheel drive and the Extended Range battery pack drops $5,580 to $59,495 with destination, while the Premium Standard Range now starts at $52,495 with rear-wheel drive and $55,495 with all-wheel drive, representing cuts of $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, at $5,900, which drops the base price to $65,495. However, the price of the GT Performance Package is unchanged at $6,000, as is the $800 price of the Nite Pony Appearance Package.
Existing customers awaiting deliver of a vehicle will automatically receive the lower price, and Ford will reach out directly to customers with a sale date after Jan. 1, 2023, who already have their cars, the automaker said in a press release.
Notably, the structured price cuts place the Standard Range Mustang Mach-E under the latest federal EV tax credit limits of $55,000 for passenger cars despite Ford's marketing of the Mach-E as a crossover SUV. The Extended Range models are still priced out of the tax credits.
Ford is also increasing production of the Mach-E. The automaker built 78,000 of the electric crossovers in 2022, but is targeting 130,000 units for 2023, a spokesperson told Motor Authority.
2023 Ford Mustang Mach-E
Increased production and decreased prices are made possible by a reinforced EV supply chain, the Ford release said. Ford and other automakers have blamed supply-chain issues for a series of EV price hikes across 2022. Multiple price increases for the F-150 Lightning meant the pickup's base price was 38.9% higher in December 2022 than at its launch.
Now there are some signs that EV price hikes are easing. Earlier this month, Tesla dropped prices across its lineup, helping to cancel out a series of price increases by the automaker in 2022.