Ford had no choice but to enter the EV price wars because Tesla lowered its EVs.
Ford and legacy auto are being pressured by Tesla to lower their EV prices.
Ford cuts prices on Mustang Mach-E
Ford is cutting prices of its electric Mustang Mach-E by up to $5,600. The price cuts will mean not all Mach-E models, will be profitable according to Marin Gjaja, chief customer officer of Ford’s electric vehicle business. Marin said Mach-E production is expected to increase from 78,000 vehicles to 130,000 units annually.
Nice Ford Mach E vs Tesla Model Y comparison table created by Farzad Mesbahi.
Farzad's YouTube Channel does a Tesla Model Y vs Ford Mach E
deep dive into the Standard, Extended, and Performance offerings.
Farzad clearly articulates that Tesla Model Y is way better than the Ford Mach E.
“Ford CEO Jim Farley said: At Ford, we want to make EVs more accessible, so we’re increasing Mach-E production & reducing prices across the Mach-E lineup. Scaling will shorten customer wait times. And with higher production, we’re reducing costs, which allows us to share these savings with customers."
Lower Ford Mach-E Prices Mean Lower Margins
Not all Mach-E models, based on the trim, will be profitable on a per-unit basis, according to Marin Gjaja, chief customer officer of Ford’s electric vehicle business.
"We are not going to cede ground to anyone. 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,” said Marin Gjaja, Chief Customer Officer of Ford Mach-E."
"There is no meat on the Ford Mach E to make money - Its a loosing business"
A poignant clip from Tesla Bad Of Brothers Farzad Mesbahi and Tom Nash
What does Dan Ives and Gene Munster
think about The Ford Mack-E price cuts
Here's a quote from Dan Ives, Managing Director and Senior Equity Research Analyst covering the Technology sector at Wedbush Securities and Gene Munster, Managing Partner at Deepwater Asset Management. Gen can be seen often providing interviews on CMBC about Tesla as well as Dan.
"Dan Ives says: Ford just cut Mustang EV prices in response to Tesla’s price cut. Mini price war about to begin with EVs in the US with Tesla’s shot across the bow on price cuts. Ford needs to be aggressive and not focused on margins in the near term because it’s an EV arms race that’s playing out right now. Ives said the Mustang Mach-E is a direct competitor with Tesla’s Model Y SUV and Ford’s price cuts were a direct response to those of its EV rival"
Jeff Lutz's tweet nails it - Ford and GM are in critical condition, no doubt!
GM and Ford report Q4 and EOY earnings this week - interesting indeed!
"The first sign that the rest of US auto makers are feeling the effects of $TSLA’s price cut. Ford cuts price of Mach-E by 10% today. Less than the flagship 20% cut the Model Y got earlier in the month. The catch 22 dynamic is in play for Tesla’s competitors. Maintain price and lose mkt share, or cut price and face deeper losses on their EV line up. My prediction; Revien $RIVN lowers its price before April 1st says Gene Munster"
Tesla started an EV price war
now Ford has to defend its self
Ford Motor Co. is slashing the price of its Mustang Mach-E in response to
Tesla Inc.'s own recent cuts, stepping up the EV price wars to a new level.
A refreshingly honest take from Bloomberg about Tesla winning the EV price war.
"Dan Ives says: In this EV arms race Tesla is uniquely positioned around scale, brand, battery technology, and the Musk DNA while others are aggressively going after market share in this all out Game of Thrones battle. As Musk reveals more around 4680 production scale and Austin ramp will be key... Ford and GM are locked in a battle to gain market share against a Musk EV empire that is willing to cut prices and gain success with each action. This was evidenced with Musk last citing Tesla is seeing demand 2x more than production since the price cuts. EV price war has begun"
Is Ford running scared and what will GM do?
The big question is: Why would Ford choose to loose money on the Mach-E? The only reason I can think of is, they have no choice. In order to stay in the game with Tesla, Ford had to lower the price of their Mach-E, even if it meant lower margins.
Here's a good video that explains legacy auto's problem competing with Tesla
I have a feeling GM will have to follow suite. They also will have no choice but to join the price war with Tesla, and they will be in forever EV tech catch-up mode. There is one thing you can be sure of... there will be blood!
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