Tesla’s declared price war is already having big consequences for Ford
In response to Tesla’s steep price drop, Ford has no choice but to follow suit. Thus, the American firm significantly reduced the prices of the Mustang Mach-E in the United States.
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Although we’re still a long way from the car at 35,000 euros, Tesla has changed its price list significantly, even though the version of the Model 3 shown at this price has been on sale for a short time in the US. Indeed, on January 13, the American manufacturer significantly reduced the prices for the Model 3 and Model Y to 13,000 euros, depending on the version. A global decline following the brand’s decline in sales, particularly in China and the United States. So Elon Musk is hoping to win back his customers in 2023, when he may have a very tough year due to Chinese competition.
A real price war
But the shockwave is far from over. Indeed, now it’s Ford’s turn to enter the dance. The American firm, which currently markets its only electric model, the Mustang Mach-E, also appears to be worried about Tesla’s sudden price drop. If it wasn’t planning to lower the SUV’s prices until then, the Dearborn-based manufacturer has finally revised its strategy, despite falling material costs.
The brand is transmitted by the site Automotive News is indeed announcing a price cut for the Mach-E, From $600 to $5,900 (approximately between 555 and 5,458 euros) depending on the finish. The unexpected turnaround for the brand shows just how much Tesla’s incredible price cuts are troubling its competitors. Marin Gjaja, customer manager of the Ford EV division in Europe, explains, “ it’s a competitive market, and it’s become even more competitive because of what Tesla has done. We will not accommodate anyone“.
US only (currently)
So the entry-level version of the electric SUV is now on sale for $47,495 (about €43,933), down $900 from its original asking price of $48,395 (about €44,765). But the most important autumn concerns GT Extended Range version that loses $5,900It goes from $71,395 to $65,495 (roughly €66,041 to €60,583).
Ford notes that the contours have already been ordered by customers will also be affected by this reduction automatic. After that, the manufacturer will provide information directly. Note that this price drop only applies to the American market, while the Ford Mustang Mach-E is still on display. From €61,650 in France. So the electric SUV is not eligible for the €5,000 environmental bonus, only for cars under €47,000.
Price war and different manufacturers
If more and more manufacturers are reviewing their pricing policies to keep up with Tesla, not everyone is on the same page. This is especially true for Volkswagen, which does not want to play this little game. He gave an interview to the German media. Frankfurter Allgemeine Sonntagszeitungits CEO Olivier Blume actually confirmed itcurrently no price reduction is planned. Same with Porsche, whose prices can even go up as explained Automotivewoche.
Faced with an Asian invasion that also worried experts in Europe, Tesla decided to take action. A quick bombshell drop prompted his opponents to do the same. A strategy adopted by Xpeng, which has reduced the prices of the P5, P7 and G3 from 20,000 to 36,000 yuan (about 2,700-4,900 euros). Later, the brand was followed by Vietnam VinFast, which meanwhile announced the implementation of promotional operations.
Without specifying if this will be a real price drop. Because for now VF8 SUV model is more expensive than Y base price is listed at $59,000 (approx. €54,413 vs. $52,990 (approx. €48,870)). After a few days, it was Lucid’s turn to announce a price cut for the Air sedan, but only under certain conditions. Indeed, only customers who subscribe to the rental offer. they are worried.
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