Ford Slashes Pricing On Its Mustang Mach-E To Compete With Tesla, Cut Inventory

The Blue Oval has cut the pricing on the Mustang Mach-E to not only make the line more competitive but also to move the crossover off dealer lots.

Let’s face facts: Electric Vehicles (EVs) just are not setting the world on fire for sales right now. Perhaps the euphoria of the early EV buyers helped fuel the excitement a couple of years ago when EVs first made their mark.

Early Sales Success Followed by Slump

It was quite a mark at that time. Ford was one of the first automakers to have competitive makes out there. One of its first was the Mustang Mach-E. Indeed, the Mustang Mach-E was the first new brand Ford offered based on the Mach-E.

Then there was the F-150 Lightning pickup, the auto industry’s first significant electric pickup. The Lightning had plenty of reservations, and the automaker based its future planning on it. At that time, Ford planned to produce about 600,000 lightning bolts yearly. Reality was quick to come last year as Ford saw sales of its electric vehicles slow down.

Instead of ramping toward the 600,000 vehicles a year plateau that was envisioned, Ford pulled in its production figures back to the 130,000-a-year level where they are right now.

According to the Ford Authority (FA), “After getting off to a hot start, demand for the Ford Mustang Mach-E – along with EVs in general – has tapered off as of late, for various reasons.”

Ford Offers a Variety of Discounts

Part of that decline can be attributed to high pricing, of course. Ford has responded by offering various discounts on its EV crossover, making it eligible for X-Plan pricing and a new dealer rental program, to boot.”

According to FA, “high inventory levels and the fact that the Ford Mustang Mach-E is no longer eligible for federal clean energy tax credits aren’t helping matters, and as such,”

According to the Detroit Free Press, " with this as a background, “The Blue Oval has decided to slash the price of its 2023 model year EV crossover to help make room for 2024 models.

2023 Ford Mustang Mach-E Price Changes

2023 Ford Mustang Mach-E Price – February 20

2023 Ford Mustang Mach-E Price – February 19

+ / – February 19 Price

Select RWD Standard Range

$39,895

$42,995

$-3100

Select AWD Standard Range

$42,895

$45,995

$-3100

California Route 1 AWD Extended Range

$48,895

$56,995

$-8100

Premium RWD Standard Range

$42,895

$46,995

$-4100

Premium AWD Standard Range

$45,895

$49,995

$-4100

Premium RWD Extended Range

$45,895

$53,995

-$8,100

Premium AWD Extended Range

$48,895

$56,995

-$8,100

GT

$52,395

$59,995

$-7600

GT Performance Edition

$57,395

$64,995

$-7600

Destination And Delivery

$1,800

$1,300

+$500

Price Cuts Vary by trim

The latest round of price cuts for the 2023 Ford Mustang Mach-E varies by trim, but all are significant, regardless.

“At the lower end of the trim level lineup, the Select has received a price cut of $3,100, followed by the Premium Standard Range at $4,100, the GT at $7,600, and the Premium Extended Range and California Route 1, which are now a whopping $8,100 cheaper than before,” FA reported.

FA noted that “this means that the entry-level Select – the cheapest 2023 Mach-E – starts at $42,995, though it’s worth noting that Ford has also raised destination and delivery charges by $500.”

According to this report, Ford chose to cut its 2023 Mach-E prices due to high inventory while also aiming to better compete with Tesla, which has dropped the price of its Model Y crossover several times.

Ford Credit Has 0 Percent Finance

On top of that, Ford Credit also offers zero percent financing for 72 months, plus a $7,500 cash incentive on leased vehicles that can be applied immediately to lower monthly payments.

“We are adjusting pricing,” said Ford spokesman Marty Gunsberg. “We continue to adapt to the market to achieve the optimal mix of sales growth and customer value.”

Ford Motor Photo

Marc Stern has been an automotive writer since 1971. His automotive articles have appeared in venues including Popular Mechanics, Mechanix Illustrated, AutoWeek, SuperStock, Trailer Life, Old Cars Weekly, Special Interest Autos, and others. You can follow Marc on Twitter or Facebook.