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Ford and Tesla, you charging more.
On Monday, the Detroit auto giant said it would cut the price of its Mustang Mach E electric crossover by up to 9%, depending on the model. It comes just a few weeks after Tesla lowered the prices of some models in its fleet to stay competitive. The EV market is growing rapidly. Who Says Inflation Will Continue?
Price Wars II: Electric Boogaloo
Elon Musk made the first move. A little over two weeks ago, Tesla slashed the price of its baseline Model Y by about 20% to $53,000, and its high-performance Model 3 sedan by 14% to about $54,000. rice field. The price cut brings Tesla’s product closer to the price point of Ford’s mid-tier Mustang his Mach E model, and below his $55,000 cap that provides customers with his $7,500 federal tax credit.
Analysts were quick to anticipate that Tesla’s sudden change of pace (no, I don’t mean this, or this, or any of these) would reverberate across the industry.ford gain EV prices have fallen first in the summer, but legacy automakers still have plenty of room to catch up with the industry’s pacesetters.
- Ford technically has six different tiers of Mach-E vehicles, and price cuts average about 6% across models, explaining a “center-cut” discount of about $4,500. and a model that includes all bells and whistles runs for $64,000.
- Last year, Ford was the second-best selling EV in America, according to Motor Intelligence. But it still holds only about 8% of the U.S. market, while Tesla controls a dominant 65% of him (down from 72% a year earlier). EV sales will only account for about 6% of all US car sales in 2022.
Van life: The EV world is not all rosy. Also on Monday, UK-based EV van start-up Arrival, which just two years ago earned him a $15 billion valuation, had about 800 employees, half of the remaining workforce. fired and appointed a new CEO. According to the company, production is not expected to start until late 2019. Next In December, it also issued a “going concern” warning that cash reserves are unlikely to last for the next 12 months. Elon Musk has a lot to stay up late at night, but Arrival isn’t one.