Ford vs. Tesla: Who Will Win the EV Battle?

If you’re looking for an affordable new EV, you might be better off checking your local Ford dealer rather than jumping on a Tesla. Other automakers have hesitated to go up against the EV giant, but Ford is rolling the dice and banking on a high score. Tesla recently cut prices on its popular Model Y and Model 3 EV units, but Ford is doing the same with price cuts on the popular Mustang Mach-E, and more are coming.

Market Share vs Profit

Elon Musk is behind the Tesla price cuts, aiming for increased market share instead of profits. Tesla delivered a record number of cars in the first quarter, but its margins took a nosedive. Rivals like GM and Volvo resisted the temptation to cut prices and pull in market share for their existing EV models. However, Ford decided to go all in against Tesla.

Ford already cut the prices of its high-volume EV seller back in January, and most recently, the automaker re-opened orders on the Mustang Mach-E to target drivers looking for a higher driving range, more tech, and lower prices. The base model of the Mach-E is now down by $3,000, and the highest trim model is down by $4,000 from its original price. You’ll find a total of six trims of the Mustang Mach-E at your Ford dealer, and all have seen price cuts of at least $1,000.

Ford Gearing Up For An EV Battle

The price cuts come as Ford is preparing for the EV battle ahead, which will almost certainly have Tesla as the initial front-runner. Like many other automakers, Ford is working on transitioning from profitable combustion-engine vehicles to a relatively uncertain EV future. Ford also revealed that it lost about $722 million in profits in the first quarter, and that was before the new round of price cuts.

However, Ford expects a lineup of 45 EV models to be offered in the United States by 2025. These models are expected to saturate a competitive small-medium two-row crossover segment. To stand out, Ford knows it needs to have its own compelling lineup at the right price, which is something currently driving the continued improvements on the Mustang Mach-E.

Securing Brand Loyalty

According to the Ford CEO, many customers become loyal to EV powertrains once they get into them, but they typically do not have brand loyalty when it comes to their initial purchase. Ford aims to change that and is willing to put up considerable upfront costs to do so. One possible thing in Ford’s favor is that it has many brand-loyal customers from its gas-engine vehicles.

When these customers decide to convert to EV models, Ford hopes that they will choose brand loyalty over a big EV name like Tesla. The Ford Mustang Mach-E versus the Tesla Model Y will be the main battle to watch. The latter’s base trim model currently costs around $5,000 more than the Ford model’s base trim.