Ford Motor Co F on Tuesday slashed prices on versions of the model year 2023 Mustang Mach-E electric SUV by as much as $8,100, in an attempt to drive sales. Rival CEO Elon Musk has one recommendation for the Detroit-based automaker- advertise on X.
What Happened: The price cuts on the Mach-E range between $3,100 and $8,100, reported Detroit Free Press, citing a pricing chart the automaker sent to its dealers.
While the Select version of the vehicle saw the lowest price cut of $3,100, extended-range Premium vehicles and the California Route 1 AWD version saw their starting prices slashed by $8,100. The cheapest version of the SUV now holds a price tag of $39,895.
Ford did not immediately respond to Benzinga‘s request for comment on the price cuts.
Following Tesla: Ford’s price cut on its electric SUV follows EV giant Tesla Inc‘s TSLA price adjustments on its best-selling Model Y SUV.
Earlier this month, Tesla cut prices on the real-wheel drive and long-range versions of the Model Y by $1000. The price cut, the first in the U.S. since the start of 2024, leaves the Model Y RWD starting at $42,990 and the Long Range variant of the vehicle with a starting price of $47,990.
Tesla CEO Elon Musk then explained the price cut as an attempt to increase vehicle deliveries despite the seasonal lull in demand. "Since most people don’t love to buy cars in the middle of winter, Tesla is offering a $1000 incentive to do so," Musk said on X.
However, unlike the Model Y, the Mach-E does not qualify for a federal EV tax credit of $7,500.
Musk Recommends Solutions: Following the price cut, a Tesla enthusiast took to X, formerly Twitter, to opine that the prices should have gone up given that Ford has been running great ads. The comment was probably sarcastic and aimed at critics who have been recommending advertising to bring customers to EVs over Tesla’s strategy of slashing prices to increase sales. Though Tesla initiated the strategy, several other EV makers including Ford have joined the price war since.
Musk responded to the X user and wrote, “They aren't advertising on this platform, even though advertising is much more effective here.”
Musk's Tesla has been running ads on X. However, during the company’s fourth-quarter earnings call, company CFO Vaibhav Taneja said Tesla will be careful not to overspend on advertising. The company would rather spend the money on setting up infrastructure in geographies such as Japan where the company has a low market share, Musk then said.
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