By Wolf Richter
Now the question is: will anyone make money on their EVs. From Wolf Richter at wolfstreet.com:
EVs now start at $27,000, about $20,000 below the average new-vehicle transaction price. That’s a good thing all around. Except for stock prices.
Ford announced today that it cut the MSRP of its 2023-model-year Mustang Mach-E, depending on model, by a range from $600 to $5,900, and its extended-battery option by $1,600. This brings the low end of the Mach-E to $45,995, which is just below the average transaction price for all new vehicles of $46,400.
Ford is not cutting prices, and thereby its profit margins, out of the goodness of its heart, but because it’s forced to by competition – and it’s lagging behind. Ford admitted as much: It said the price cuts are designed to keep the Mach-E “competitive in the marketplace.” It said, “We are not going to cede ground to anyone.” The Mach-E was the third-best-selling EV in the US in 2022, after Tesla’s Model Y, and Tesla’s Model 3.
Tesla has gone on a big round of price cuts in January in the US, including for its Model Y, a crossover SUV that competes directly with the Mach-E. Chevrolet cut the prices of its mass-produced EVs, the BOLT and the BOLT EUV. Kia and Hyundai also cut prices on their electric crossover models. Nissan cut the price of its EV.
The views and opinions expressed in this commentary are those of the author and do not reflect the official position of Citizens Journal
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