Ford Motor Company has cut prices on its Mustang Mach-E electric vehicle for the second time in 2023, followed by several price cuts this year by Tesla, the company's main rival in the EV market.
Prices for the tailpipe-free Mach-E models have decreased by 7.8%, or by $3,000 and $4,000, depending on the electric vehicle.
But unlike Tesla CEO Elon Musk's statement last month that he is willing to cut profit margins to zero to sell his vehicles at a lower price, Ford CEO Jim Farley insisted, according to Reuters, that he has no plans on going to price "just to gain market share."
Ford will also be growing its range of standard-range battery models as its electric crossover SUV will see increased production this year, Reuters reported.
The change has the potential to increase demand and put more electric vehicles on the road, which produce considerably less carbon pollution than traditional vehicles.
Even when accounting for the environmentally damaging production of EV batteries, electric vehicles still produce considerably less planet-warming gases over their lifetime compared to those powered by dirty energy sources.
In the UK in 2019, for example, the lifetime pollution of a Nissan Leaf EV was approximately three times less per kilometer (about 0.62 miles) than that produced by a conventional gasoline-powered vehicle.
This year, federal EV incentives in the U.S. have increased demand for EVs.
"As we look and want to stay competitive in the marketplace, we're having to respond," Marin Gjaja, chief customer officer of Ford's electric vehicle business, told CNBC.
Other car manufacturers are joining the race to produce high-quality EVs at a rapid pace while keeping prices at reasonable levels.
While Tesla and Ford have slashed prices of their EV vehicles, General Motors chief executive Mary Barra insisted there is no need to cut its prices.
"Right now, based on the interest we're seeing, the pricing we put out was very appropriate," she told analysts earlier this year.
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