America’s automakers are deep into a transition to electric propulsion, hoping to meet federal tailpipe emissions rules and state EV sales mandates. But Americans keep sending the same signals – we’ll buy these things when they’re cheaper.
It may be true.
Ford made one cheaper. The result? A sales surge.
Industry publication Automotive News explains, “Discounts begun in February of up to $8,100 on lingering 2023 Ford Mustang Mach-E’s are working: Sales are up, and inventory is down.”
Ford Slashed Prices When Government Incentives Disappeared
The Ford Mustang Mach-E is a sporty-looking all-electric SUV with seating for five and a range of up to 310 miles, depending on trim level. KBB expert test driver Colin Ryan calls it “a well-rounded electric vehicle with impressive range figures and some excellent tech, but also a sense of familiarity and heritage unavailable elsewhere in the segment.”
But Mustang Mach-E sales were more than cut in half early this year when the model lost access to federal electric vehicle (EV) tax credits. Some EVs are eligible for a federal tax rebate of up to $7,500. But the rules that qualify cars for the discount grow more stringent every year – an attempt to force automakers to rely less on China for critical battery minerals. The Mach-E was one of many cars that lost access this year. Ford responded with a series of price cuts.
AN says, “Since Ford announced the discounts in late February … movement of Mach-E inventory has nearly tripled.”
More Low-Cost EVs on the Way
The data reinforce a simple point – Americans say they want cheaper EVs. When EV prices come down, they make good on their word.
That’s good news for automakers and their quest to go electric.
Everything gets cheaper to build the more of it you build. EV transaction prices in February were lower year over year by 12.8%. Price declines are accelerating – January saw EV prices 11.6% lower than a year before.
Slashing prices on today’s EVs isn’t the only way to decrease costs. Ford in February revealed a secret project to build lower-cost EVs, and Tesla says it is close to revealing an EV that could start under $25,000.
