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<\/a><\/p>\nWASHINGTON (Reuters) -Ford Motor Co is cutting prices on its Mustang Mach-E electric vehicle and reopening orders, the No. 2 U.S. automaker said on Tuesday, the second time has reduced prices this year after a series of price cuts by rival Tesla Inc.<\/p>\n
Ford said it is also increasing the range for standard-range battery models as it increases production of the electric crossover SUV in the second half of the year.<\/p>\n
Prices for most Mach-E models were cut by $3,000 or $4,000 depending on the version or by as much as 7.8%, Ford said. The price of the Mach-E Premium rear-wheel drive version is dropping from $50,995 to $46,995.<\/p>\n
Ford CEO Jim Farley told analysts Ford does not intend to pursue EV sales volume “at any cost…. “We are not going to price just to gain market share.”<\/p>\n
Farley’s stance contrasts with Tesla CEO Elon Musk’s statement last month that Tesla could cut profit margins on vehicle sales to zero and make up the difference through sales of software-enabled services.<\/p>\n
Ford shares closed down 2.2% at $11.80 Tuesday and fell 1.5% in after-hours trading after it reported first quarter earnings.<\/p>\n
Last month, the federal EV tax credit for the Mach-E fell by half to $3,750 from $7,500 after new battery sourcing requirements took effect.<\/p>\n
Mustang Mach-E U.S. sales fell 20% in the first three months of the year. Ford said Tuesday shipments of the Mustang Mach-E were limited in the first three months of the year to make industrial changes that will nearly double manufacturing capacity.<\/p>\n
In January, Ford cut prices of the Mustang Mach-E by as much as $5,900 per vehicle after hiking prices in August by $3,000 to around $8,000, citing supply-chain issues and higher material costs.<\/p>\n
Ford said all standard-range models will now be powered by lithium iron phosphate (LFP) batteries, which allows vehicles to gain an additional 45 units of horsepower and improves the targeted EPA range estimates.<\/p>\n
On Monday, Tesla raised prices in a range of up to $290 in Canada, China, Japan and the United States after the company had slashed prices on its top-selling vehicles since the start of the year.<\/p>\n
The hike was Tesla’s first on its two top-selling models at the same time in multiple markets, although prices across its lineup are much lower than in January, after a round of discounts.<\/p>\n
(Reporting by David Shepardson in Washington; additional reporting by Joseph White in DetroitEditing by Jonathan Oatis, Matthew Lewis and Lincoln Feast)<\/p>\n
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