Ford Motor Co. said Monday that it would be “significantly increasing” production of its Mustang Mach-E in 2023 as the company continues its efforts to improve supply of its electric-vehicles and cut back on customer wait times.
The carmaker’s “new EV supply chain” is “coming online,” Ford F, -0.60% announced in a Monday morning press release, and accordingly, the company sees opportunities to lower prices “across the board.”
Ford noted in a table that the price of the Select rear-wheel-drive model with standard range would drop by $900 to $45,995 in one example of the pricing changes. The price of the GT extended-range model is dropping by $5,900 to $63,995.
In reducing prices, Ford expects its efforts will make the vehicle “even more accessible to customers” and “competitive in the marketplace.” The company is aiming to position the Mustang Mach-E “as a compelling option for those looking for an electric SUV,” according to the release.
Tesla Inc. TSLA, -0.56% disclosed earlier in January that it was cutting prices on several models of its own electric vehicles.
Alexander Shaer, an automotive and industrial specialist with the Jefferies sales team, wrote in a Monday note to clients that the “big price cuts” from Ford come as the price war with Tesla “intensifies.”
“We are not going to cede ground to anyone,” Marin Gjaja, the chief customer officer for Ford’s Model e business unit, said in the release.
Shaer added that “[e]lasticity of demand appears to be working.”
Read more:Tesla shares under pressure after EV maker slashes prices of Model 3 and Y cars in the U.S.
Ford said that two-thirds of the customers for the vehicle are coming to Ford from competing brands. The car was the “No. 3 EV model in the U.S. in 2022,” according to Ford’s release.
Shares of Ford are off 2.6% in premarket trading Monday.
Also read: Tesla stock has fallen enough to start buying, Berenberg says
This article was originally published by Marketwatch.com. Read the original article here.