Ford is cutting U.S. starting prices on its Mustang Mach-E electric SUV, bringing many versions below the cost of its main competitor, the Tesla Model Y.
Also on Tuesday, Tesla raised prices by $250 on the Model Y SUV and the Model 3 small sedan, its two top-selling vehicles.
The standard range base versions of the Mach-E each saw $3,000 price cuts, with the rear-wheel-drive version falling to $42,995 and the all-wheel-drive model going to $45,995. Ford cut $4,000 off prices of the premium standard-range versions, with rear-wheel-drive dropping to $46,995 and all-wheel-drive going to $49,995.
The price of the GT all-wheel-drive extended range version also fell by $4,000 to $59,995.
By comparison, Tesla’s Model Y dual motor now starts at $47,240, while the Y Long Range rises to a starting price of $50,240, and the Y Performance version starts at $54,240. All have all-wheel drive.
Affordability is key
Automotive industry experts say affordability is key to driving widespread acceptance of electric vehicles as the U.S. tries to loosen its dependency on fossil fuels as well as gas-powered cars.
Many Americans aren’t yet sold on electric cars, a recent poll by The Associated Press-NORC Center for Public Affairs Research and the Energy Policy Institute at the University of Chicago poll shows. While approximately 4 in 10 U.S. adults said there were somewhat likely to switch from gas-driven vehicles in their next purchase, for most Americans high prices and too few charging stations remain strong deterrents, according to the survey.