Electric vehicle sales have reportedly shown some signs of slowing down since mid-2023. EV sales in California, the nation's largest state, declined in the final two quarters of the year topped off with a 10% decline in the fourth quarter, from 101,151 sales in Q3 to 89,993 in Q4, Automotive News said.
Ford Motors' EV sales fell 11% in January, and the company said it would reduce production of its electric F-150 lightning truck as demand falters.
A combination of high interest rates and a higher price for EVs, compared to their internal combustion engine and plug-in hybrid counterparts, has helped stall EV sales. The automobile companies' solution has been to lower EV prices to try to attract more buyers.
Tesla (TSLA) in October lowered the price of the Model 3 Rear-Wheel Drive from $40,240 to $38,990 and its Rear-Wheel Drive version of its Model Y from $47,740 to $43,990, which is where they were in late January.
Tesla on Feb. 12 reduced the price on the nation's best selling EV, Model Y, cutting prices for the Real-Wheel Drive and Long Range All-Wheel Drive models by $1,000 to $42,990 and $47,990 respectively through the end of February.
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Tesla raises prices while others slash them
But later in February, Tesla surprised many by raising the price of its upgraded Model 3 Long Range All-Wheel Drive by $1,500 to $47,490. The new Model 3 was priced at $45,990 when it launched on Jan. 10, but that price didn't last long.
In early February, Tesla increased the price of the Long Range AWD by $1,000 and raised the price again by another $500 by Feb. 14. With the destination and order fees added to the price, buyers will pay $49,130 for the vehicle.
Tesla rival Ford (F) , however, cut the price of its all-electric Mustang Mach-E in May 2023 by up to $4,000 and in July 2023 lowered the price of its signature EV truck the F-150 Lightning by 16%, or $9,980, to $59,974. It subsequently reduced the price even further to $49,995 in anticipation of a ramp up of sales of Tesla's new Cybertruck.
Ford
Ford cuts Mustang Mach-E prices again
Sluggish electric vehicle sales have prompted Ford to again lower the prices of its Mustang Mach-E compact crossover SUV across the board, ranging from $3,100 to $8,100 in reductions depending on the trim package. Ford is also reducing the prices of its Ford-150 Lightning electric trucks, ranging from $5,000 to $12,500 cash bonuses, depending on the trim.
Price reductions for the Mustang Mach-E include $3,100 cut in the Select Rear Wheel Drive to $39,895 and the Select All Wheel Drive to $42,895; $4,100 reduction in the price of Premium Rear Wheel Drive to $42,895 and the Premium All Wheel Drive to $45,895; $7,600 cut in the GT to $52,395 and GT Performance Edition to $57,395.
The lower prices include a $8,100 reduction in Premium Rear Wheel Drive Extended Range to $45,895, Premium All Wheel Drive Extended Range to $48,895, and California Route 1 All Wheel Drive to $48,895, according to a Ford price list provided to Electrek.
Ford also offers $7,500 Red Carpet Lease cash toward 2023 Mustang Mach-E leases, which also qualify for a $7,500 additional federal tax credit. Qualified buyers can also obtain 0% financing for 72 months, according to the Ford website.
The Ford F-150 Lightning trims also offer bonus cash incentives on purchases, including a $5,000 retail bonus cash on the F-150 Lightning Lariat Standard, $7,500 retail bonus cash on the F-150 XLT Extended Range and $12,500 retail cash bonus for the F-150 Lightning Platinum.
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