Well, that’s a switch. Ford Motor Co. just walked back the 2023 price increase of its all-electric Mustang Mach-E – in some cases by a lot. This comes hot on the heels of a Tesla price drop, and while this is certainly an attempt to remain competitive on Ford’s part, there’s another motive for the Mustang Mach-E price drop: the federal EV tax credit.
This may surprise you, but for the IRS’s purposes, the Mustang Mach-E is classified as a car. This means, it needs to be priced less than $55k for consumers to be able to take advantage of the $7,500 federal tax credit. When you look at the price breakdown below, you can see that previously, just three trims of the Mach-E would have qualified for the credit, now five out of six do.
The Mustang Mach-E price drop
In a time when automakers are raising prices each model year – sometimes twice a model year – this Mustang Mach-E price drop is a bit of a shocker. But it makes sense as Ford is simultaneously increasing production of the EV and wanting to make it eligible for the tax credit.
So, you’re looking at a price drop from $600 to $5,900. The complete pricing information, excluding destination fees, is as follows:
The even better news: If you’re waiting on a delivery for your vehicle, you’ll automatically get the adjusted price if the sale date was after January 1, 2023.
The bottom line
It is dog eat dog right now in the EV space. Tesla was once the only player in town, and now that there are new, more-attractive and better-built players, the games can really begin.
The end of the story: This is excellent news for the consumers and affordability.
Let’s see who picks up the gauntlet next.
