Ford slashes Mustang Mach-E prices again as EV price war enters its second year

The Ford Mustang Mach-E just became a lot more affordable after the automaker announced a major price cut for the 2023 model year. The new adjustments will bring at least one version of the Mach-E below $40,000 for the first time.

The Mustang Mach-E was the number two bestselling electric SUV in the US in 2023. But to get there, Ford had to wage a brutal price war with Tesla that is now entering its second year. The Elon Musk-run company has seen its market share in the US slip quarter over quarter, but Tesla still commands over 50 percent of the EV market.

The price cuts are also a reflection of the new reality in which EV sales are not growing as fast as they were in prior years. Demand is softening as more customers are looking for the right price, as well as more evidence that the charging infrastructure is going to work reliably.

Ford spokesperson Martin Gunsberg said the new prices were intended “to adapt to the market to achieve the optimal mix of sales growth and customer value.”

Here’s the breakdown of the new Mustang Mach-E prices as compared to the previous MSRP.

The premium trims with extended range batteries, both rear-wheel and all-wheel drive, are getting the biggest discounts of $8,100 knocked off the sticker price. And the Select RWD trim’s new price will be just below $40,000, which seems like a significant milestone for Ford’s flagship EV.

Ford is also adding new incentives for leased vehicles, offering a $7,500 “Red Carpet Lease cash incentive,” when the vehicle is leased through Ford Credit, the company’s in-house financial division. That will be in addition to the federal EV tax credit Ford Credit passes on to consumers, resulting in lower monthly payments.

The Mustang Mach-E is only eligible for the $7,500 EV tax credit when leased. The EV is not currently eligible for the credit for customers who want to buy or finance the Mach-E thanks to its battery supply chain.