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A leaked memo from the company to its U.S. dealers indicate that Ford will be slashing prices for its all-electric Mustang Mach-E.
Ford Motor Company (NYSE: F) stock price dropped 1.35% yesterday to close the day trading at $6.60. F stock continues experiencing sell pressure amid the ongoing coronavirus pandemic and the increased competition, especially in the electric vehicle industry.
The company is competing with Tesla Inc (NASDAQ: TSLA) and Chinese companies that have significantly ventured into the electric vehicle industry.
Hereby, Ford stock had dropped approximately 29.03% in the past nine months. However, F shares were up approximately 10.37% in the past three months.
At the time of writing, the company had a market capitalization of approximately $26.62 billion with 3.91 billion outstanding shares.
In its Q2 report, the company revealed an Adjusted EPS loss of 35 cents per share versus a loss of $1.17 per share expected. In addition, the Automotive revenue stood at $16.6 billion versus $15.95 billion expected.
Although the figures were good for the time, competition has scaled much higher. As a result, the company needs to do more than its comfort zone allows to stay profitable in the market.
Ford Game Plan and Mustang Mach-E Price
Earlier in the year, the automaker unveiled its bronco family and also the Mustang Mach-E.
The Bronco off-road capabilities gave the company a cutting edge over its competitors but its prices were viewed as too high. The level of competition in the EV industry pushes the automaker to focus on electric vehicles.
Ford Mustang Mach-E 2021 was unveiled and is the first Ford to be designed specifically as an electric vehicle. During its release, prices were set to start around $40,000 and range up to about $65,000 depending on options, with the higher-performance GT models arriving in summer 2021.
However, with the low demand and high competition, the company is seeking to lower prices to stay ahead of its competitors.
A leaked memo from the company to its U.S. dealers indicate that Ford will be slashing prices for its all-electric mustang Mach-E.
The instructions from Ford HQ indicates that the electric crossover’s price needs to drop by between $1,000 and $3,000, depending on the model.
Credible rumors are that the company is concerned that the Mach-E is overpriced compared to Volkswagen’s forthcoming ID.4.
Notably, it is expected that customers with existing reservations have until mid-October to make changes to their orders in light of the price change. The first Mustang Mach-E vehicles are expected to be delivered by the end of the year.
“Exceptional value has always been a hallmark of the Mustang brand. In addition to its great all-electric driving range and performance, we’re adjusting Mustang Mach-E pricing to remain fully competitive in a segment that is seeing dynamic price changes,” Ford said on the pricing sheet.