Update: This article has been updated to include the bonus cash incentives on the 2023 Ford F-150 Lightning.

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. Additionally, Ford is also offering bonus cash incentives on certain variants of the F-150 Lightning. 

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.

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Sales slump encourages Ford to slash Mustang Mach-E prices

The Ford Mustang Mach-E lost its tax credit eligibility on January 1, 2024, due to stricter battery and component sourcing rules. But Ford is still keeping its EV attractive with substantive price cuts, even if they come at increased losses.

The more expensive variants get a bigger cut. The California Route 1 AWD, with 91 kilowatt-hours of usable battery capacity and 312 miles range, now starts at $48,895, thanks to a healthy $8,100 price cut. To make the electric pony 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 Ford EV's updated price list, excluding the $1,800 delivery and destination fees:

MY2023 Ford Mustang Mach-E New Prices Old Prices Change
Select RWD

$39,895

$42,995

$3,100

Select AWD

$42,895

$45,995

$3,100
Premium RWD (Standard Range)

$42,895

$46,995

$4,100
Premium AWD (Standard Range)

$45,895

$49,995

$4,100
Premium RWD (Extended Range)

$45,895

$53,995

$8,100
Premium AWD (Extended Range)

$48,895

$56,995

$8,100
California Route 1 AWD

$48,895

$56,995

$8,100
GT

$52,395

$59,995

$7,600
GT Performance

$57,395

$64,995

$7,600

As for the F-150 Lightning, customers can obtain huge bonus cash incentives on the Lariat, XLT, and Pro variants. Note that these variants already qualify for the $7,500 federal tax credit at the point of sale.

On top of the federal tax credit, customers can now stack a $7,500 cash bonus on the XLT Extended Range, $5,000 on the Lariat Standard and Extended Range, and a whopping $12,500 on the Platinum. If you prefer leasing, Ford will give you $1,500 red carpet lease cash on the XLT, $5,000 for the Lariat, and $7,500 for the Platinum—note that these cannot be combined with the tax credits.

Also worth noting is these deals are only available on the MY23 F-150 Lightning. The MY24 pricing is different. Here are the retail cash bonus deals on the Ford F-150 Lightning, excluding delivery and destination fees:

Variant (MY23 models) MSRP Retail cash bonus Federal Tax Credit Potential Savings
Pro

$49,995

- $7,500 $7,500
XLT Standard Range $54,995 - $7,500 $7,500
XLT Extended Range $69,995 $7,500 $7,500 $15,000
Lariat $69,995 $5,000 $7,500 $12,500
Lariat $77,495 $5,000 $7,500 $12,500
Platinum $91,995 $12,500 - $12,500

The Mach-E lost its eligibility for the federal tax credit on January 1, 2024, after the stricter Inflation Reduction Act guidelines kicked in. The new rules placed more restrictions on components sourced from the so-called “foreign entity of concern.” The regulations aim to reduce reliance on China for battery materials even further. 

The price reductions place the EV 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 EVs. F-150 Lightning sales were up 55%, although Mach-E sales were only up by a meager 3%. January 2024 was somewhat disappointing with Mach-E sales down 51% year-over-year while F-150 Lightning sales were down 0.3% due to an industry-wide slowdown.

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