Ford Slashes Mustang Mach-E Prices, Starting MSRP Now Under $40,000

The 2023 Ford Mustang Mach-E is now handsomely cheaper than before. The Detroit automaker announced revised pricing for its electric crossover today, with certain variants cheaper by as much as $8,100.

The entry-level Select rear-wheel-drive Mach-E, with 226 miles EPA range from a 72-kilowatt-hour battery, now costs $39,895 with a $3,100 price cut, excluding destination and delivery fees. The Premium all-wheel-drive standard range model, with the same battery and range, now starts at $45,895, getting a $4,100 price cut.

The more expensive variants get a bigger cut, with the California Route 1 AWD now starting at $48,895, thanks to a healthy $8,100 price reduction. To make it more attractive, Ford is also offering 0% financing for 72 months for eligible buyers, and a $7,500 Red Carpet Lease cash incentive when leased through Ford credit.

Here’s the updated price list, excluding the $1,800 delivery and destination fees:

The Mach-E lost its eligibility for the federal tax credit on January 1, 2024, after the stricter Inflation Reduction Act guidelines kicked in, with more restrictions in place for components sourced from the so-called “foreign entity of concern.”

The price reductions place the electric pony closer to the Hyundai Ioniq 5 and the Tesla Model Y as far as MSRP is concerned. Although the latter qualifies for the federal tax credit despite the new FEOC rules, which still makes it the most affordable premium electric crossover.

2023 was a record sales year for Ford’s electric vehicles, although Mach-E sales were only up by a meager 3%. But January 2024 was somewhat disappointing with Mach-E sales down 51% year-over-year due to an industry-wide slowdown.