“We are not going to cede ground to anyone,” said Marin Gjaja, COO for Ford Model e
Updated at 8:55 am EST
Ford Motor Co. (F) – Get Free Report shares pared earlier declines Monday after the carmaker said it would cut prices of its flagship electric vehicle, the Mustang Mach-E, amid a “significant” increase in production.
Ford said it would cut Mustang Mach-E prices across the board, with an 8.4% reduction pegged for the extended-range GT version, taking it $5,900 lower to $63,995.
Extended range batter costs, Ford said, would fall 18.6% to $7,000.
Tesla (TSLA) – Get Free Report, the U.S. market leader in EV sales, began cutting the price of its Model 3 and Model Y vehicles in China last October, with similar reductions unveiled in the U.S. shortly after, and then deepened earlier this month after the group posted disappointing December quarter delivery figures.
Tesla slashed the price of its Model 3 and Model X sedans, along with the Model Y crossover, by between 6% and 20% for U.S. customers, pegging the Model 3 at just under $53,000.
Tesla CEO Elon Musk said the price cuts were a big reason for a January demand surge which he said is twice the pace of production and “the strongest in our history”.
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“We are not going to cede ground to anyone,” said Marin Gjaja, COO for Ford Model e. “We are producing more EVs to reduce customer wait times, offering competitive pricing and working to create an ownership experience that is second to none.”
“Our customers are at the center of everything we do – as we continue to build thrilling and exciting electric vehicles, we will continue to push the boundaries to make EVs more accessible for everybody.”
Ford shares were marked 2.56% lower in pre-market trading immediately following news of the Mach-e price cuts to indicate an opening bell price of $12.93 each.
Ford will publish its fourth quarter earnings after the close of trading Thursday, with analysts looking for an adjusted bottom line of 62 cents per share, a 138% increase from last year, on revenues of $40.37 billion.
Last October, Ford clipped its guidance for full-year profits to around $11.5 billion, down from a prior estimate of between $11.5 billion to $12.5 billion, but said free cash flow is likely to rise to between $9.5 billion and $10 billion.