Elon Musk’s Bold Move to Slash Tesla Prices Scores Huge Win over EV Rival Ford

Tesla CEO Elon Musk has just scored a huge win over key electric vehicle (EV) rival Ford after his automotive company Tesla recently slashed its prices.

Ford has just announced that it is slashing prices for its Mustang Mach-E electric SUV amid a brutal EV price war.

However, Musk has an ace card up his sleeve that Ford does not.

Marin Gjaja, chief customer officer for the Ford Model E division said: “We are responding to changes in the marketplace.

“We want to stay competitive in the marketplace.”

Gjaja denied the price cuts were an attempt to keep up with Musk who recently shocked the motoring world and turned the heat up on rivals by cutting prices on his Tesla cars.

“We have a different product, we have different customers,” he said.

“We try to have an offering that we think is better than Tesla’s and then we try to price accordingly to what we think is appropriate in the market.”

But Musk runs a tight, profitable ship and he has a bigger profit margin on his cars than Ford.

Musk also sells software to power innovations like self-driving separately giving him even more of a cushion.

Tesla has also developed a far-superior electric vehicle charging infrastructure that governments and other EV companies are keen to access.

Meanwhile, Ford is selling its cars at a loss to keep up.

Ford said of the price cuts:

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“With its new EV supply chain coming online, Ford is significantly increasing production of the Mustang Mach-E this year to help reduce customer wait times and to take advantage of streamlined costs to reduce prices across the board, making Mustang Mach-E even more accessible to customers and keeping it competitive in the marketplace.”

According to CNBC:

Ford declined to comment on which Mach-E trims and models would be profitable after the price cuts.

The company is expected to begin separately reporting financial results for its electric vehicle business, known as Model E, later this year.

“We want to make money,” Gjaja said.

“Don’t get me wrong, we absolutely want to make money.

“Believe you me, I know that we need to be trying to get more profitable because we will be publicly accountable for that number.”

To increase Mach-E production, Ford is upgrading the plant in Mexico where the vehicles are made.

It is expected to come back online next month, Ford said.”

According to an expert on the car market:

“In Ford’s case, the price cuts will mean not all Mach-E models, based on the trim, will be profitable on a per-unit basis.”

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By David Hawkins

David Hawkins is a writer who specializes in political commentary and world affairs. He's been writing professionally since 2014.

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