Ford Motor Company today announced a price hike for its much-in-demand Mustang Mach-E electric vehicle. This rule will go into effect for all models produced after May 2. This decision is made especially during a time of uncertainty. Looking toward the $7,500 federal electric vehicle (EV) tax credit, its future is uncertain and it could be eliminated any day now.
According to Reuters, the pricing changes are a clear example of how changing government policies have affected electric vehicles. These shifts are having huge impacts on the tech sector. The possible repeal of the federal tax credit has both consumers and manufacturers concerned. This move would make a big difference in making affordable EVs more available in the market.
As we’ve written about here, former President Donald Trump has repeatedly suggested killing the EV tax credit, currently set at $7,500. House Speaker Mike Johnson has given similar hope as well. Their statements have sent waves of panic through prospective purchasers and stakeholders in the industry. They say the tax incentive is needed to drive EV adoption. If the credit is phased out entirely, consumers will be discouraged by the unavoidable extra costs associated with the purchase of an EV.
Ford’s pricing strategy is a response to this shift. The automaker has said the new higher price will only apply to cars made after that date. This is a welcome change that will make a big difference for today’s buyers. It’s going to drive sales now, as consumers weigh their options in an increasingly changing financial environment.
The all-electric Mustang Mach-E has made quite the splash with its shockingly awesome performance and killer looks. It’s an important piece of the puzzle in Ford’s growing electric vehicle portfolio. Increasing prices might dissuade customers who wait on incentives for their purchase decision.