- Ford’s new Mustang Mach-E is positioned against the Tesla Model Y.
- Both cars have similar features, but Ford enjoys a huge price advantage.
- The arrival of competitors threatens the profitability of Tesla.
Elon Musk has never been afraid of competition. In fact, he has stated on multiple occasions that the mission of Tesla is “to accelerate the advent of sustainable transport by bringing compelling mass market electric cars to market as soon as possible.” The celebrity-CEO even praised several Tesla-competitors in March 2019 for their progress on electric vehicles.
Although Musk’s mission is noble, the onslaught of competition is not good news for Tesla shareholders. Most of the competition staring Tesla in the face comes from legacy car manufacturers that have decades of car-building experience. Among the competitors set to enter the electric vehicle market, Ford’s new Mustang Mach-E poses an imminent threat.
Mustang Mach-E vs. Tesla Model Y
In 2018, Ford claimed it was going “all-in” on electric vehicles and committed to more than doubling its investments on the project. Living up to the promise, Ford unveiled the Mustang Mach-E on Sunday in Los Angeles. The all-electric SUV is positioned directly against the Tesla Model Y crossover. To his credit, Musk congratulated Ford on the unveiling. With Tesla stock having appreciated close to 100% since June 2019, Musk seems confident in the company’s ability to tackle competitors.
Ford’s president of global operations Joe Hinrichs told CNBC that the Mustang Mach-E will hit the market around the same time as Tesla’s Model Y.
Ford’s Significant Price-Advantage Over Tesla
When it comes to specs, performance and pricing, the two cars are quite closely matched. The bare-bones versions of both cars even have the same range.
While the Mustang Mach-E has lesser cargo space than the Model Y, it more than makes up for…