(Reuters) – Ford Motor Co cut prices of all variants of its Mustang Mach E electric SUV on Tuesday, as the Detroit automaker deals with lower demand for EVs.
Demand for EVs has deteriorated over the past year as buyers struggled with inflationary headwinds and higher borrowing costs.
The automaker’s base Select variant of Mach E now carries a suggested retail price of $39,895, compared with its prior price of $42,995, while the higher-end Mach E GT spec will cost about $7,600 less, at $52,395.
Tesla’s Model Y crossover, which directly competes with the Mach-E starts at $42,990 before federal tax credits of $7,500.
The Elon Musk-led EV maker sparked a price war early last year in a bid to spur demand and grab more market share.
Ford and other legacy automakers have slowed their EV push to instead focus on their higher-margin hybrid and gas-powered models.
(Reporting by Nathan Gomes in Bengaluru; Editing by Krishna Chandra Eluri)
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