DETROIT – Ford Motor is hiking the starting prices of its electric Mustang Mach-E crossover by more than $8,000 for some models, as it reopens order banks for the 2023 model year.
The company on Thursday said the markups – ranging between $3,000 and $8,475, depending on the model and battery – are due to “significant material cost increases, continued strain on key supply chains, and rapidly evolving market conditions.”
The Mach-E is the latest electric vehicle to experience a price increase, as raw material costs for batteries for electric vehicles more than doubled during the coronavirus pandemic.
The starting prices for the 2023 Mustang Mach-E will now range from about $47,000 to $70,000, up from roughly $44,000 to $62,000 for the 2022 model year. Prices exclude taxes and shipping/delivery costs.
Ford earlier this month also raised the starting prices of its electric F-150 Lightning pickup by between $6,000 and $8,500, depending on the model. The automaker cited similar reasons for those increases, specifically related to raw materials such as lithium, cobalt and nickel that are used in batteries for the vehicles.
Others automakers including General Motors, Rivian, Lucid and Tesla also significantly raised prices on their newest electric vehicles.
In addition to the new pricing, Ford said it changed options and increased capabilities for some Mach-E models. It also is increasing shipping charges on the Mach-E by $200 to $1,300 on all models.
Ford said the higher prices will go into effect for new orders placed starting Tuesday, when order banks reopen.
Customers who have existing, unscheduled 2022 model year orders will receive a “private offer” to convert to a 2023 model year vehicle, the company said. It’s not immediately clear what price those customers would be offered.