Automotive news has typically trended badly for consumers of late, especially regarding cool new EVs. But we just received some legitimately positive news about one of our favorite electric cars, the Ford Mustang Mach E: Ford has announced plans to increase Mustang Mach E production in 2023. And it's getting legitimately cheaper.
How is the Ford Mustang Mach E getting cheaper?
The Mustang Mach E base price isn't changing dramatically. The Select RWD drops by $900 to $45,995, and the Select eAWD now starts $600 cheaper, at $48,995. More significant changes come with the upper trim levels. The Premium RWD trim falls by $3,980, and the Premium eAWD by $3,680. Those vehicles now start at $50,995 and $53,995, respectively.
Ford saved the greatest discounts for the top-level trims. The top-of-the-line GT Extended Range model now starts at $63,995, a drop of $5,900. The California Route 1 eAWD also starts at $57,995 now, a discount of $5,580. The extended-range battery option also falls by $1,600 to $7,000.
Why is the Ford Mustang Mach E getting cheaper?
This appears to be Ford responding to the new Federal Tax Credit regulations for 2023 enacted by the Inflation Reduction Act. The Mustang Mach E is a crossover, but the IRS in its infinite wisdom determined that the Mustang Mach E does not meet the requirements to be considered an SUV — so the price threshold for a potential tax credit is $55,000, rather than $80,000.
The previous pricing severely constrained the Mustang Mach E's ability to earn you a $7,500 federal tax credit. Only the base Select models were eligible, and you could not add the extended-range battery. Under the new pricing, the Premium RWD and eAWD trims could come below $55,000. And you can also theoretically add an extended-range battery and still qualify too.
Perhaps the best evidence it's a tax credit move is that Ford is retroactively altering the pricing for existing customers whose vehicles would be eligible for a 2023 tax credit. Existing Mustang Mach E reservation holders awaiting delivery will receive the discount. And Ford will reach out to customers who have taken delivery with a sale date after January 1, 2023.