Because of tariffs on cars and car parts imported from Mexico and Canada, Ford Motor Co. (NYSE: F) will raise the price of its Mustang Mach-E electric vehicle (EV) by as much as $2,000 on 2025 models. The Mach-E does not do well based on sales. Ford sold only 11,607 of them in the first quarter.
The news of the increase was based on a confidential memo: “The higher prices will apply to 2025 models of the Maverick, Bronco Sport, and Mach-E built after May 2, according to a memo reviewed by The Wall Street Journal.” Ford said that tariffs would cost the company $1.5 billion this year based on adjusted income before taxes and interest when it announced earnings. Ford warned dealers they would face price increases if car import tariffs remained at 25%. The company will not raise dealers’ prices for cars in transit to them.
Ford has had a challenge selling the EV crossover. For the 2023 and 2014 Mach-E models, some customers were offered 0% APR for 72 months. Based on new Congress and Trump administration plans, the EV will not get the $7,500 EV tax credit many car companies have enjoyed for years. However, the $ 7,500 offer probably did help increase Mach-E sales for a time.
The gasoline-powered Mustang was introduced in 1964. Ford expected to sell 100,000 that year, but sales hit 400,000. In the first quarter of 2025, Ford only sold 9,377 gas-powered Mustangs.
The Mach-E was part of Ford’s early plans to market EVs. Ford used the iconic sports car brand to launch an EV crossover. It did the same with its F-150 pickup when it released an electric model called the F-150 Lightning. The launches were one of Ford’s abjectly poor strategies in the EV market, costing it billions of dollars. Ford estimates this division’s loss to be over $5 billion in 2025.
The Mach-E is already expensive. The base model’s MSRP is $37,995, and the four-wheel drive version costs $38,685. Add self-driving and safety features, and the price jumps to over $41,000. The GT model has a base price of just over $54,000.
Ford faces public skepticism about EVs in general. These include concerns about a lack of charging stations in some areas, poor range, tire wear, and low charge in cold weather. Raising the Mach-E price is only more challenging to overcome.
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