Ford said it plans to expand electric vehicle (EV) production and reduce the price of its electric Mustang Mach-E.
Tesla, which sells more EVs than any other U.S. carmaker, recently cut the prices of many of its car models.
- Ford will cut the price of its electric Mustang Mach-E by up to 8.8% on some versions.
- The Mach-E, which was released in late 2020, is a direct competitor to Tesla's Model Y.
- Ford said that its EV supply chain is coming online, which should allow the carmaker to reduce production costs.
- Chief customer officer Marin Gjaja said that Ford is "not going to cede ground" to competitors in the EV space.
- John Murphy, an auto industry analyst at Bank of America Merrill Lynch, said that Tesla's price cuts could trigger a price war among EV makers.
- Ford was the second-biggest seller of EVs in the U.S. last year, with a 7.6% market share.
- Tesla dominated the space, with ~65% of all EV sales.
