Ford cuts price of the Mustang Mach-E again
Ford is once again cutting the price of its electric SUV, the Mustang Mach-E, as it ramps up its price war with Tesla.
Tesla, the leader in EV sales by a large margin, has
cut prices six times so far this year. Its price cuts have
eaten into its industry-leading profit margins and added
pressure to its stock price.
Tesla’s profit margins have been falling, because it sells only EVs. But Ford still gets the overwhelming majority of its sales from its profitable sales of gasoline powered cars and trucks. So it was able to report improved results even with the EV price cuts announced earlier.
Ford is still losing money on its EV sales. It said Tuesday it expects to lose about $3 billion before taxes, interest and depreciation from its electric vehicle division during the year, but that’s the same guidance it gave when it met with investors in March and
broke out the results for that segment for the first time. It lost $722 million on that basis from EVs in the first quarter.
https://www.cnn.com/2023/05/02/business/ford-mach-e-price-cut/index.html