Ford Is Approaching the EV Market Correctly With The Mach E Says Report
According to investment website Seeking Alpha, Ford is correctly approaching the EV market with the Mach E.
While the Mach E base price has been rumored to be in the neighborhood of $40,000, the report suggest that the average selling price for the Mach E will probably be around $45,000 to $50,000 with options.
They talk about how Ford is taking a "realistic" approach to EVs by focusing on vehicles meant for the middle class.
If you have the time it's a great read. Here's one of the main parts of the article:
While the Mach E base price has been rumored to be in the neighborhood of $40,000, the report suggest that the average selling price for the Mach E will probably be around $45,000 to $50,000 with options.
They talk about how Ford is taking a "realistic" approach to EVs by focusing on vehicles meant for the middle class.
If you have the time it's a great read. Here's one of the main parts of the article:
The Mach-E is an indication of Ford being on the right track
Ford is set to release the Mach-E EV, next year, which is by far its most important EV move to date. It is a crossover, with a 300-mile range, which will sell at a starting price of around $40,000. Realistically speaking, it will probably sell at an average price of around $45,000-50,000 once options are included, and my suspicion is that Ford will lose money on it, or break even at best. But the loss will not be exceedingly steep. In my view, this is the exact approach that the Tesla (TSLA) experience shows, namely that EVs with a range that provide similar utility to their conventional car counterparts can only be sustainably produced and sold into the luxury and premium car segment. After all, in the last quarter, the average sale price of its cars was about $56,000. In other words, it is selling cars priced for the luxury car segment. All the talk about the model 3 being mass-affordable has been proven to have been just an attention grabber, not reality.
One of the aspects of the Mach-E is the fact that it has a unique design, and yet it has Ford fingerprints on it, with some shared characteristics with the iconic Mustang.
As I pointed out in a recent article, exploring Daimler's (OTCPKMLRY) EV strategy, its most important EV offer currently hitting the markets is the Mercedes EQC, which seems to lack any significant design features that set it apart from most other Mercedes cars. The driving range, estimated to be just over 200 miles in real life conditions also falls short of providing full utility that drivers currently get from a conventional car. While the range of the EQC does not compare to the best that Tesla has to offer, the starting price does. It also fails to stand apart from other Mercedes models in a way that it says "EV", meaning that it fails to provide consumers with the ability to signal affluence and social responsibility simultaneously, like a Tesla does.
