Ford slashes down prices of Mustang Mach-E following Tesla moves

American multinational automobile manufacturer, Ford has stated it is slashing down prices on its Mustang Mach-E electric vehicle and reopening orders after a series of price cuts by rival Tesla, the second time it has reduced prices this year.

The U.S. automaker said it is also expanding the range for standard-range battery models as it increases production in the second half of the year.

Ford said it is cutting most Mach-E prices by $3,000 or $4,000 depending on the version or by as much as 7.8%. The price of the Mach-E Premium rear-wheel drive version is dropping from $50,995 to $46,995.

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.

Mustang Mach-E U.S. sales fell 20% in the first three months of the year.

In January, Ford cut prices of the electric crossover SUV 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.

Ford said on Tuesday 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.