Ford vs. Tesla EV Prices: Are EV Prices Dropping?

Tesla was the first EV automaker to cut prices, but now Ford is doing the same. Does this signal the beginning of EVs becoming more affordable?

Consumers certainly shouldn’t overlook the fact that both Tesla and Ford raised EV prices throughout 2022, which means these price cuts might not put things back to where they were. Thankfully, with the need to compete against each other, both automakers look to drop consumer prices on some of their top-selling electric vehicles, bringing things back in line with where they should be in the market.

Ford is number two

There shouldn’t be any surprise to Tesla being the top EV automaker in the world. Ford is trying to solidify its position as the second-place name in this arena. The first step in staying with the competition is to follow their lead. This means Ford will likely continue to cut EV prices whenever Tesla does the same. Earlier in the year, Tesla announced price cuts for all four of its EV models. Ford announced recently it would do the same with the 2023 Ford Mustang Mach-E price dropping by $600 to $5,900, depending on the trim.

Ford adds better financing rates for the Mach-E

In addition to price reductions for the Mustang Mach-E, Ford is offering special financing rates through Ford Credit for Mach-Es ordered between January 30 and April 3. This financing rate could be as low as 5.34 percent. This is a huge bonus to customers searching for a new electric vehicle and will make the Mach-E more affordable when coupled with the reduced prices. Currently, interest rates have increased across the board, making it more expensive for customers to purchase new vehicles. Of course, there’s more to this change than simply saving a bit of money.

Ford commits to building more electric SUVs

The 2022 offering of the Ford Mustang Mach-E saw 77,959 of these new electric SUVs sold, but Ford wants to build and sell many more in 2023 to solidify its position as the second-place EV automaker behind Tesla. Ford intends to increase global production of the Mach-E by 67 percent to build 130,000 of these sporty electric SUVs. Both Ford and Tesla announced reduced EV prices, but Ford has only committed to dropping the prices of one model so far, while Tesla reduced the prices of all four of its electric vehicles.

What about the F-150 Lightning?

Why hasn’t Ford announced a price drop for the F-150 Lightning? This electric pickup is the top-selling model in the class, and it doesn’t seem to be getting any more affordable. Unfortunately, Ford’s previous announcement to offer the base model as an affordable truck has come and gone. We could see this pickup at lower prices when other models truly compete with it. Currently, we only have the Rivian R1T and GMC Hummer EV as the other electric trucks, neither of which is in direct competition with the Ford F-150 Lightning.

What models are part of the Mustang Mach-E lineup?

The 2023 Ford Mustang Mach-E is the only Ford EV seeing price reductions to compete with Tesla and its EV price cuts. The Mach-E trim levels and the amount each is being reduced are:

• Select RWD Standard Range – $900
• Select eAWD Standard Range – $600
• California Route 1 eAWD Extended Range – $5,580
• Premium RWD Standard Range – $3,980
• Premium eAWD Standard Range – $3,680
• GT Extended Range – $5,900

Adding the optional Extended Range Battery to this EV costs $1,600 less than it did for the 2022 model. Ordering the Nite Pony Appearance Package or GT Performance Package doesn’t come at a reduced price for the Mustang Mach-E.

What will you find in this Ford electric SUV?

The Select and Premium trims of the Mustang Mach-E use a 70.0-kWh battery to provide 247 miles of driving range in RWD models and 224 miles of driving range in AWD versions. The power output for these trims is 266 horsepower and 317 lb-ft of torque for the RWD version, while AWD models receive an increase of torque to 428 lb-ft.

Features found in the Select trim

The Ford Mustang Mach-E Select is the base model of this electric SUV, and it includes:

• 18-inch alloy wheels
• Active grille shutters
• Auto on/off headlights
• Dual-zone automatic climate controls
• 10.2-inch digital cluster screen
• Faux-leather seating
• 8-way power-adjustable driver’s seat
• 60/40 split-folding second-row seat
• Heated power outboard mirrors
• Keyless entry
• Push-button starting
• 15.5-inch touchscreen
• Wireless Apple CarPlay and Android Auto
• 6-speaker audio system
• Wireless device charging
• Ford Co-Pilot360 safety package

The Premium trim gives you

The Premium trim can offer 310 miles of driving range when selected with the longer-range battery pack. This trim also offers:

• 19-inch alloy wheels
• Panoramic fixed-glass roof
• 8-way power-adjustable passenger seat
• Upgraded LED projector headlights
• Power-folding outboard mirrors
• Ban & Olufsen 10-speaker audio system
• Power rear liftgate
• Heated front seats
• Heated steering wheel
• Driver’s side memory settings

The Mustang Mach-E California Route 1 model adds

This trim of the Ford Mustang Mach-E builds in the Select trim package of features, but it has the upgraded powertrain of the Premium model with the longer-range battery pack and standard AWD. The California Route 1 also includes:

• Cargo cover
• Heated front seats
• Heated steering wheel
• Power-folding outboard mirrors
• 18-inch wheels
• Driver’s side memory functions

The GT model is the most powerful Mach-E

The GT trim of this electric SUV increased power to 480 horsepower and 600 lb-ft of torque while using the 91-kWh battery pack. The estimated driving range is 270 miles. This model also builds on the Select trim, but it adds:

• • 20-inch alloy wheels
  • Red-painted front and rear brake calipers
  • A panoramic fixed-glass sunroof
  • Front sport seats
  • 8-way power adjustable passenger seat
  • LED projector headlights
  • Power-folding outboard mirrors
  • 10-speaker Bang & Olufsen audio system
  • Power liftgate
  • Heated front seats
  • Heated steering wheel
  • Driver’s side memory settings

With both Tesla and Ford offering EV price reductions, will these two companies compete more heavily for your attention? Will we see a similar price reduction for the F-150 Lighting once other electric trucks head to the market?