Ford Increases Mustang Price by $2,000

By Douglas A. McIntyre Published May 8, 9:15AM EDT

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Ford Motor Co. (NYSE: F) will raise the price of its Mustang Mach-E and other vehicles because of tariffs.
The expensive Mach-E already did not sell particularly well.

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Ford Increases Mustang Price by $2,000 — © 2024 Getty Images / Getty Images News via Getty Images

Because of tariffs on cars and car parts imported from Mexico and Canada, Ford Motor Co. (NYSE: F | F Price Prediction) 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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About the Author Douglas A. McIntyre →

Douglas A. McIntyre is the co-founder, chief executive officer and editor in chief of 24/7 Wall St. and 24/7 Tempo. He has held these jobs since 2006.

McIntyre has written thousands of articles for 24/7 Wall St. He is an expert on corporate finance, the automotive industry, media companies and international finance. He has edited articles on national demographics, sports, personal income and travel.

His work has been quoted or mentioned in The New York Times, The Wall Street Journal, Los Angeles Times, The Washington Post, NBC News, Time, The New Yorker, HuffPost USA Today, Business Insider, Yahoo, AOL, MarketWatch, The Atlantic, Bloomberg, New York Post, Chicago Tribune, Forbes, The Guardian and many other major publications. McIntyre has been a guest on CNBC, the BBC and television and radio stations across the country.

A magna cum laude graduate of Harvard College, McIntyre also was president of The Harvard Advocate. Founded in 1866, the Advocate is the oldest college publication in the United States.

TheStreet.com, Comps.com and Edgar Online are some of the public companies for which McIntyre served on the board of directors. He was a Vicinity Corporation board member when the company was sold to Microsoft in 2002. He served on the audit committees of some of these companies.

McIntyre has been the CEO of FutureSource, a provider of trading terminals and news to commodities and futures traders. He was president of Switchboard, the online phone directory company. He served as chairman and CEO of On2 Technologies, the video compression company that provided video compression software for Adobe’s Flash. Google bought On2 in 2009.