Ford Cuts EV Prices Despite $722M Loss

Ford's "Model e" electric vehicle unit lost $722 million in the first quarter of this year, but the company is pushing ahead with price cuts to its electric Mustang Mach-E SUV. Quartz reports that the company announced price cuts of between $1,000 and $4,000 across the Mach-E range this week in an apparent bid to keep up with price changes at Tesla, the only larger North American maker of electric vehicles. Ford announced this week that it made $1.76 billion in the first quarter of 2023, rebounding from a $3.1 billion loss in the same period last year, the AP reports. Most of the profit came from its Ford Blue internal combustion unit.

Ford says it has boosted Mach-E production capacity and improved its range to an "EPA estimate of 250 miles for rear-wheel drive models and 226 miles for dual-motor all-wheel drive version," per the Verge. Tesla cut its prices multiple times this year before raising them this week. Ford CEO Tim Farley said Tuesday that the company plans to make its EV business profitable by 2024 and it won't get trapped in a price war. "We are not going to price just to gain market share," he said. Ford says the price cuts are possible thanks to upgrades that will up capacity at the Mexico plant where Mach-Es are assembled, the Detroit News reports. (More Ford stories.)