A price war for electric cars is underway in the US

A price war for electric cars is underway in the US

Photo: ANP

In the US, a price war is brewing among electric car manufacturers. Recently, US Tesla cut its prices in the domestic market by up to 20 percent to stimulate demand. Rival Ford is now following suit with an average price cut of $4,500 for its electric Mustang Mach-E.

It is not yet known if Ford will also cut its prices in Europe. Tesla did it all over the world, including the Netherlands. The company’s chief executive, Elon Musk, acknowledged last year that prices had become “uncomfortably high” and could hurt demand. According to him, demand has increased sharply in recent weeks with the reduction in prices.

It’s worth noting that Ford indicated before the price cut that the electric Mustang was unprofitable. However, the group hopes to offset the poor profit margin by increasing production by more than two-thirds this year.

The cheapest Mach-E is now $45,995 (42,588 euros) in the US. In the Netherlands, the starting price of this car is 58,100 euros.

“Our competitors are also changing their prices. If we want to be competitive, we have to respond,” said Marin Gajaja, director of Ford’s electrics division. The price cut in the US means the electric Ford, like many Tesla models, is eligible for a US$7,500 electric vehicle tax credit in the country.

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