Hyundai and Ford Slash EV Prices in a Bid to Compete with Tesla
Established Automakers Adjust Prices to the Tune of Tesla
Steve Birkett is an electric vehicle advocate based in Greater Boston, Massachusetts. He is a content creator and marketing professional who contributes written and recorded pieces to a wide range of media outlets. His analysis has been featured in Find The Best Car Price, WWLP TV, and Torque News, among others. He has also had video content featured on Inside EVs. Birkett was an EV Guide for Plug in America events in Massachusetts (Drive Electric Cambridge and Drive Electric Lowell) and Ohio (Earth Day 2019 at Cleveland Zoo). He participates in quarterly advisory panel meetings for EVolve New York (a state-level charging initiative) and has contributed to focus groups for prominent U.S. charging networks.
Birkett is a father-of-two who loves nothing more than packing up the family and hitting the road in their latest electric car, which is currently a 2022 Hyundai IONIQ 5. With multiple Chevy Bolts in his past, as well as a Chevy Volt and Tesla Model 3 LR in the extended family, plus various EV rentals when he ventures back home to his native United Kingdom, Birkett has more than 100,000 all-electric miles under his belt and is always ready to try out a new electric vehicle.
For press inquiries, contact email@example.com
Tesla's price cuts throughout 2023 lit a fire under automakers, prompting Hyundai to lean into generous lease deals and Ford slashing EV prices on its Mustang and F150 EV models. Ford's steep discounts on its leading performance model, the Mustang Mach-E GT, are a clear sign that legacy automakers feel the pressure from Fremont.
- Steve Birkett, Senior EV Editor
October 26th, 2023 – Ford has announced steep price cuts on its Mustang Mach-E across all trims. Retail Customer Cash of $6,250 its top trim the 2023 Mach-E GT an especially noteworthy move to reduce Ford EV prices.
Earlier in October, Ford also confirmed up to $7,500 off the 2023 F-150 Lightning (lease or purchase), even before federal EV incentives are factored in. This puts the potential savings on both of Ford's leading EV models in the tens of thousands of dollars. Hyundai, which is currently unable to take advantage of federal tax credits due to not yet meeting domestic production criteria, has leaned into attractive lease deals as a way to moves its IONIQ line of electric vehicles. At the time of writing, Hyundai EV leases are some of the most competitive in the market.
Electric vehicle sales prices fell in the third quarter, with the average selling price of an EV at $50,683 in September 2023, according to Kelley Blue Book. That represents a drop of 2.9% from the previous month, where the average EV sales price was $52,212 in August.
Despite the efforts of Hyundai and Ford to lower EV prices wherever they can, prices of Tesla models declined more sharply than any other automaker this year. Year-over-year, the average selling price of a Tesla in 2023 is one-quarter of what it was in 2022.
Although earnings have inevitably suffered, Tesla's profit margins and leading brand recognition give the company more leeway to shape the market for all-electric vehicles. Established automakers like Ford and Hyundai have to lean into sales of combustion vehicles to offset losses from R&D and ramping EV production, putting them in a more precarious position when Tesla makes a price move.
All eyes will be on fourth-quarter Mach-E and Lightning sales, as well as Hyundai IONIQ brand lease numbers, to gauge whether even established automakers with attractive EVs can keep up.