As new EV shoppers are well aware, prices have skyrocketed over the past couple of years, largely due to supply chain issues and the rising costs of the raw materials needed to make batteries. This applies to the Ford F-150 Lightning, which has received multiple price jumps that have increased its cost by as much as 40 percent since its launch, as well as the Ford Mustang Mach-E, which has also been treated to more than one price hike, including a recent one for the 2023 model year, while incentives have also evaporated. On the flip side, the Mach-E’s chief competitor – the Tesla Model Y – has also increased significantly in price over the past couple of years. However, this past Friday, Tesla slashed Model Y pricing by a rather large amount, meaning the Ford Mustang Mach-E is now far more expensive than its chief rival.
| Model | Starting MSRP (Jan 2023) |
|---|---|
| Model Y Long Range | $52,990 |
| Model Y Performance | $56,990 |
Previously, the Model Y Long Range featured an MSRP of $65,990, while the Performance model started out at $69,990. However, Tesla has since slashed the price of both models by a whopping $13,000 or roughly 20 percent, bringing those numbers down to $52,990 and $56,990, respectively.
| Trim/Option | Starting MSRP (Jan 17, 2023) |
|---|---|
| Select RWD Standard Range | $46,895 |
| Select AWD Standard Range | $49,595 |
| California Route 1 AWD Extended Range | $63,575 |
| Premium RWD Standard Range | $54,975 |
| Premium AWD Standard Range | $57,675 |
| GT AWD Standard Range | $69,895 |
| Extended Range Battery For Premium RWD | $8,600 |
| Destination And Delivery | $1,300 |
This leaves the Ford Mustang Mach-E with price tags that are significantly higher, though The Blue Oval’s EV crossover is still available in more – and cheaper configurations – such as the Select range, which can be purchased for less than the cost of a Model Y Long Range. However, the Select also offers less range – 224 and 247 miles for the rear- and all-wheel drive variants, respectively – compared to the Model Y Long Range’s rating of 330 miles.
To get close to that, Mach-E customers must opt for the pricier Premium models, which offer 290 and 310 miles of range with the extended range battery in rear- and all-wheel drive configurations, or the California Route 1, which is rated to travel 312 miles on a single charge, though each of these models costs more than the comparable Model Y. The same goes for the sporty GT, which now costs considerably more than the Model Y Performance, though it features similar performance specs (when equipped with the optional Performance Edition upgrade) and less range.
To date, the Mach-E has conquested its fair share of customers from Tesla, offering a compelling alternative to the Model Y. It’s safe to assume that unless Ford follows suit and also cuts Mach-E prices, it may have an impact on that trend, though a forthcoming switch to cheaper lithium-iron phosphate batteries may help bring costs down as well.
We’ll have more on everything Ford’s competition is up to soon, so be sure and subscribe to Ford Authority for 24/7 Ford news coverage.
Comments
Guess big auto can’t make cars that compete on price or performance. For the big markup dealers, yeah this is going to hurt. Don’t want to hear any whining that there is lack of demand. Tesla is selling big time
Tesla missed sales targets last qtr despite big rebates.
As for competition, you may be long on Tesla, or you may be trying to goose a short position, but the other OEM’s who even offer BEV’s haven’t responded yet, so your statement doesn’t really make sense.
And this is why I refuse to buy a electric vehicle. Who can afford a car for that price, only the rich.
Do buy one used. Used EV’s will be a bargain and have much more life in them than a ICE vehicle.
By the way, how can you refuse to buy something that you can’t afford? That’s illogically silly.
Maybe there should be a campaign “tesla, if you can sell it for so cheap, why the hell we’re your prices so high previously “.
Tesla has been gouging everyone for up to $12000 for years.
Can’t blame Tesla for ignorant rich people.
Those folks are not only wealthier but probably much better informed than you are my friend.
Maybe you should learn about the concept of a demand curve and how a player monopolizing a market niche can charge above market rates compared to other hotly contested market segments.
Imagine being that guy who bought a new Model Y two weeks ago and now he finds out the price dropped 20% overnight. This is a good indicator of why TSLA stock is tanking – can’t trust them. That, and the top ten EV SUV lists on Motor Trend or Kelly Blue Book don’t include a Tesla.
Love or hate Tesla. Ford needs to lower Mach E prices to match Tesla yesterday or lose market share. Also Ford needs to put the smack down on dealers that mark up EVs or open a channel to sell direct and use their army of lawyers to tie NADA up in court for years while they build market share and goodwill with customers who will be on Ford’s side of this dispute.
Good points, but until the wait lists for the Mach E come down to more Tesla-like levels (a few weeks or a month), Ford has no need to reduce prices. They’re literally selling more than they can make. Same with giving their dealers the ability to mark up cancelled-order EVs to local market rates. Dealers get so few to sell, they really do need to maximize those margins to cover their own expenses.
Ford had built a lot of market and mind share with the Mach E. That is evaporating, fast because of the now $16,000* price penalty when the $7,500 tax credit is included. Time for some painful decisions at Ford. Mind and market share is expensive to get back. In this case it is going to be expensive to keep.
* Mach E AWD CAR1 or long range RWD premium vs a blue over white long range Model Y.
Imagine paying over $50k for an electric version of an old woman’s car. Gross.
?
Big manufacturers need really line the pockets of politicians and destroy the franchise model and dump dealerships. Tesla is able to translate their direct sales advantage into huge discounts like this since the margin is so much higher.
This means no more dealer markups.