Ford to cut prices of Mustang Mach-E, following Tesla’s lead

By David Shepardson

 and Aishwarya Nair

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Jan 30 (Reuters) – Ford Motor Co (F.N) on Monday cut prices of its electric crossover SUV Mustang Mach-E by as much as $5,900 per vehicle, weeks after rival Tesla Inc (TSLA.O) slashed prices globally on its electric vehicles by as much as 20%.

Shares of Ford closed down 2.9% in above average trading to $12.89. Tesla fell 6.3%.

The move comes as electric vehicle manufacturers are feeling pressure from Tesla’s price cut to respond.

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“Ford just cut Mustang EV prices in response to Tesla’s price cut. Mini price war about to begin with EVs in the US with Tesla’s shot across the bow on price cuts,” said Dan Ives, an analyst at Wedbush Securities, on Twitter.

The move will make at least one additional version of the Mach-E again eligible for a $7,500 federal tax credit, which requires the Ford EV to have a suggested retail price of no more than $55,000 to be eligible.

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