Ford Looks To Boost Mustang Mach-E Sales In US With Michigan-Made Batteries, Lower Starting Price
Ford Motor Co. (NYSE:F) is seemingly trying to increase sales for its Mustang Mach-E electric SUV by bringing down its price.
What Happened: Earlier this month, LG Energy Solution said that it agreed with Ford that the batteries for its Mustang Mach-E will be produced at the battery maker’s Michigan facility in 2025, instead of Poland.
The decision, the company said, will improve efficiency and help capitalize on the U.S.’s Inflation Reduction Act (IRA). The IRA was introduced in 2022 and provides tax credits and grants to incentivize the adoption of clean energy in the U.S.
Ford also said earlier this month that its model year 2025 Mustang Mach-E will start at $36,495, much lower than the starting price of the model year 2024 version of the SUV.
The starting price of the vehicle, Ford said, will be $36,495, 8.8% lower than the starting price of the 2024 Mach-E model. The 2025 Mustang Mach-E will go on sale in early 2025 and with batteries manufactured in Michigan, could also be eligible for an EV tax credit of $7,500, taking the price down further for eligible customers.
The model year 2024 Mustang Mach-E is not eligible for a $7500 tax credit due to the use of imported parts in the vehicle.
Why It Matters: The Mach-E was Ford's best-selling EV in the U.S. in the last quarter. The company sold 13,392 Mach-E SUVs in the three months through the end of September, accounting for 57% of its overall EV sales in the period. In fact, it was the second best-selling electric SUV in the third quarter in the U.S., after Tesla Inc.'s Model Y.
The Tesla Model Y is the EV giant's best-selling offering. It starts at $44,990 in the U.S. for its cheapest variant.
Ford's EV segment called Model E, however, continues to accumulate losses. For the whole year, Ford expects to incur a loss of $5 billion to $5.5 billion within the EV segment.
Price Action: Ford Motor stock rose 0.8% in premarket trading on Monday to $11.16, ahead of quarterly earnings. Year-to-date, Ford’s shares are down nearly 9%, according to Benzinga Pro data.
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Photo courtesy: Ford
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Posted-In: electric vehicles EVs Ford Mustang Mach-E mobility Mustang Mach-ENews Tech
