America’s No. 2 automaker said Tuesday that Ford Motor Co. (FN) is cutting prices for its Mustang Mach-E electric car and reopening orders, the second time it has cut prices this year after a series of. Price cuts by rival Tesla Inc (TSLA.O).
Ford said it is also expanding the range of standard-range battery models as it ramps up production of its electric crossover SUV in the second half of the year.
Ford said prices for most Mach-E models have been slashed by $3,000 or $4,000 depending on version, or by 7.8%. The rear-wheel-drive Mach-E Premium version drops in price from $50,995 to $46,995.
Ford CEO Jim Farley told analysts that Ford has no intention of pursuing electric vehicle sales “at any cost… We’re not going to set prices just to get market share.”
Farley’s stance contrasts with Tesla CEO Elon Musk’s statement last month that Tesla could cut profit margins on car sales to zero and make up the difference through sales of software-enabled services.
Shares of Ford closed down 2.2% at $11.80 on Tuesday and were down 1.5% in after-hours trading after it reported first-quarter earnings.
Last month, the federal electric vehicle tax credit for the Mach-E cut in half to $3,750 from $7,500 after new battery sourcing requirements took effect.
Mustang Mach-E sales in the US fell 20% in the first three months of the year. Ford said Tuesday that shipments of the Mustang Mach-E were limited in the first three months of the year to make industrial changes that will nearly double manufacturing capacity.
In January, Ford cut prices for the Mustang Mach-E by as much as $5,900 per vehicle after prices rose in August by $3,000 to about $8,000, citing supply chain issues and higher materials costs.
Ford said all models with standard range will now be powered by lithium iron phosphate (LFP) batteries, allowing vehicles to get an additional 45 units of power and improving EPA target range estimates.
On Monday, Tesla raised prices in the range of up to $290 in Canada, China, Japan and the United States after the company slashed the prices of its best-selling cars since the start of the year.
It was Tesla’s first hike over its two best-selling models at the same time in multiple markets, though prices across its lineup are much lower than they were in January, after a round of discounts.
Reporting by David Shepardson
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