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2022 Ford Mustang Mach-E front

Ford Slashes Prices, Increases Production of 2023 Mustang Mach-E

Mach-E prices are still high compared to this time last year

  • Ford has cut prices on the Mustang Mach-E by as much as $5,900.
  • The base Mustang Mach-E now has a starting price of $47,495.
  • The biggest price cuts apply to upper trim levels, such as the GT and California Route 1.
  • Ford's strategy follows a recent price drop Tesla made across its EV lineup.

In what could foreshadow an escalating EV price battle, Ford Motor Co. has announced a significant round of price cuts for its Mustang Mach-E electric SUV. This follows a recent slashing of prices by Tesla Motors across its entire range of electric-powered sedans and SUVs.

Depending on the chosen trim, the Mach-E’s drop in price ranges from as little as $600 upward to $5,900. The most significant savings apply to higher trims, such as the GT Extended Range and California Route 1 Extended Range. For example, the 2023 Mach-E GT Extended Range now costs $65,495, versus its previous asking price of $71,195 (pricing includes destination and handling but excludes taxes and any applicable EV tax incentives).

2022 Ford Mustang Mach-E Front 3/4

Ford has also focused its price cut directly on the Mach-E’s optional extended-range battery pack. Where this option used to be available on models with a standard-range pack for an extra $8,600, this larger pack now rings in at $7,000.

So what exactly is behind these newfound savings for car shoppers who might be considering Ford’s electric-powered SUV?

According to the Dearborn, Michigan-based automaker, the lower prices are now possible due to weakening supply chain issues, along with increased production capacity at its Mach-E factory in Cuautitlán Izcalli, Mexico. A newly reconfigured federal EV tax credit system — as determined by the Inflation Reduction Act — is also playing a major role in how automakers are structuring EV pricing to take advantage of potential tax benefits for consumers.

During a media briefing, Marin Gjaja, chief customer officer for Ford's Model e division, said the company is "responding to changes in the marketplace," including how best to stay competitive within this federal framework of EV incentives. At present, with its price cuts factored in, the 2023 Mach-E in Select and Premium trim, fitted with rear- or all-wheel drive, and the standard-range battery pack would all fall under the $55,000 mark without destination fees. That just happens to be the IRS-imposed price cap for EV cars and crossovers to be eligible for a federal tax credit of $7,500. And, yes, the Mach-E is classified as an electric car/crossover. For EVs that are considered trucks or SUVs, the tax incentive price cap is set substantially higher at $80,000.

New technology is playing a role here, too. Ford is working to introduce lithium iron phosphate (LFP) batteries into its EV range, including the Mustang Mach-E and Ford F-150 Lightning pickup truck. Compared to lithium-ion batteries, LFP batteries are cheaper to produce overall partly because metals like nickel and cobalt are not required in their construction.

2022 Ford Mustang Mach-E Rear 3/4

Yet, despite its sales success, at various points last year Ford had to temporarily halt all orders of the Mach-E while production attempted to catch up with demand. Later, only specific trims and powertrain choices were available, with models like the entry-level Mach-E Select trim disappearing from online ordering. It’s also worth noting Ford significantly raised prices of the Mach-E in August 2022, as it struggled with a balance of consumer demand and supply issues. This round of price cuts erases some, but not all, of the increases Ford enacted last summer.

At the time of writing, the four main Mach-E trims — Select, Premium, California Route 1 and GT — were available online, with the caveat of an estimated delivery requiring 18-22 weeks.

According to Ford’s news release, the price cuts are applicable to existing Mustang Mach-E customers awaiting delivery of their vehicle. Ford also stated it will reach out directly to Mustang Mach-E owners who already have their vehicle but have a verifiable sale date after January 1, 2023.

“Part of our mission at Ford is to treat customers like family,” said Ford's Marin Gjaja. "We want our customers to know they made the right decision by choosing a Mustang Mach-E, and we’ll continue to play a proactive role in doing the right thing for those joining the Ford family.”

Edmunds says

Fewer supply chain problems, new battery technology and more competition equal some pretty great news for car shoppers considering an EV. The Ford Mustang Mach-E is more affordable, and a more comprehensive range of trims and configurations are now eligible for federal EV tax credits.