Ford Motor Co. announced that it would lower prices of its flagship electric vehicle, the Mustang Mach-E, amid a "significant" increase in production.
The carmaker would slash the price of Mustang Mach-E by an average of $4,500. The move comes after Tesla’s decision to cut prices by as much as 20%. The automaker was the No. 2 seller of EVs in the US last year, much behind Tesla, which controls almost two-thirds of the market.
Ford’s price cuts also leads to Mach-E prices to be in line with new caps on EV prices to qualify for federal tax credits of up to $7,500 under the Inflation Reduction Act.
Last year, Ford unveiled plans to invest $50 billion to develop and make electric vehicles. It aims to produce more than 2 million a year by the end of 2026.