- Ford (F) is following in the steps of Tesla (TSLA) and slashing prices on its Mustang Mach-E electric SUV by up to $6,000. The manufacturer announced that it is increasing Mach-E manufacturing this year and that it is lowering pricing across the board by utilising reduced costs.
- Following the announcement that the price of the Mach-E would be reduced to $13.04 per unit, Ford shares fell 1.8% in early afternoon trading on Monday. This move brings the stock's drop over the past six months to about 15%.
- The price reduction comes two weeks after Tesla reduced pricing in the US on most of its models in a bid to boost demand and gain market share. Tesla reduced the cost of its Model 3 and Model X sedans, as well as the Model Y crossover, by 6% to 20% for consumers in the US, putting the Model 3 at less than $53,000.
Why it matters
Analysts are awaiting the disclosure of Ford's financial results for the fourth quarter on Thursday and anticipate that the firm will report an adjusted bottom line of 62 cents per share, or 138% more than the previous quarter, on $40.37B in revenue. Ford reduced its projection for the full year's earnings in October from between $11.5B and $12.5B to roughly $11.5B but added that free cash flow is expected to rise to between $9.5B and $10B.