The Ford Mustang Mach-E SUV is seeing high demand, which has resulted in the company putting plans in motion to boost production by the end of the year. While rising commodity prices have led to price increases for the Mach-E recently, it appears that Ford’s found a way to get the pricing down. Meanwhile, Tesla has increased prices for the Model Y, which is the rival for the Mach-E. Both companies are fighting for market share in a rapidly growing segment, which means we’re witnessing a bit of a price war, even if nobody wants to officially call it as much.
Ford Mustang Mach-E vs. Tesla Model Y: Price War
According to the latest pricing data, Ford dropped the price of the Mach-E standard range by $3,000, bringing the MSRP to $42,995, California Route 1 by $1,000 to $56,995, the Premium standard range by $4,000 to $46,995 and the GT extended range by $4,000 to $59,995. Meanwhile, Tesla has increased the price of the Model Y by about $250, which is subtle. The standard Model Y now has an MSRP of $47,240, the Model Y Long Range is currently $50,240, and the Model Y Performance is $54,240.
These prices don’t include the standard delivery fees, which for Ford is $1,800, and for Tesla is $1,390. With the current decreases from Ford for the Mustang Mach-E, prices are now similar to the Tesla Model Y. Ford has announced an increased range for standard-range battery models to a targeted EPA-estimated range of 250 miles for its rear-wheel drive and 226 miles for its all-wheel drive. By comparison, the Model Y comes standard with AWD and has an EPA estimated range of 279 miles for the standard.
Ultimately, it’ll be up to the customers to decide which vehicle they prefer. Still, they can’t decide on anything without factoring in that the Mustang Mach-E qualifies for potential Inflation Reduction Act federal tax credits in 2023 of $3,750, which can drop the price even more. Unfortunately, the Tesla Model Y doesn’t qualify due to not having a Workers Union, a bill the federal government passed over a year ago. So we’ll have to keep an eye on the prices for these vehicles because they’re sure to change again as the price war continues.
Ironically, Ford appears to have increased the MSRP of the Coyote V8-powered 2024 Mustang Dark Horse muscle car as it reduces the price of the all-electric Mach-E SUV.