Business Maverick: Ford Slashes Electric Mustang’s Price in Response to Tesla

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Ford Motor Co. is slashing the price of its electric Mustang Mach-E by an average of $4,500 in response to Tesla Inc.’s own recent cuts, stepping up the price wars in a slowing EV market.

“Our competitors are also adjusting their prices,” Marin Gjaja, chief customer officer for Model e, Ford’s EV unit, told reporters. “As we look and want to stay competitive in the marketplace, we’re having to respond.”

“We expect more price cuts to come,” Tom Narayan, an analyst with RBC Capital Markets, wrote in a note to investors Monday. “The Tesla cuts in our view will and have started to create a cascading effect.” Chief Financial Officer John Lawler said in June that profits on the Mach-E had been “wiped out” by rising commodity costs. The automaker responded then by raising prices on the Mach-E to reduce losses, Lawler said.

 

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