Ford is slashing Mustang Mach-E prices by up to $5,900

has cut prices on its electric vehicle by up to eight percent (to $5,900), with the price of the extended-range battery dropping by about 19 percent. Base models are now about $600 to $900 cheaper according to who reported that people currently waiting for Ford to deliver the Mach-E will receive the price cut automatically.

At least one variant is again eligible for , which applies to electric vehicles that have an MSRP of $55,000 or less. SUVs, vans and pickup trucks are eligible for the credit if they have a maximum MSRP of $80,000, but the Internal Revenue Service .

In August, Ford pegged the Mach-E for new orders between about $2,600 and $8,000 more than 2022 versions. The company attributed the price spikes to “significant increases in material costs, continued strain on key supply chains and rapidly changing market conditions.” . However, these problems seem to have abated somewhat.

“At Ford, we want to make electric vehicles more affordable, so we’re increasing production of the Mustang Mach-E and lowering prices across the Mach-E lineup,” said Ford CEO Jim Farley . “Scaling will reduce customer wait times. And with higher production, we reduce costs, which allows us [to] share those savings with customers.”

Ford has built 78,000 Mach-E vehicles in 2022. It hopes to increase production to 270,000 annual production by the end of that year. The company aims to reach a common rate of EV production with the help of new lithium iron phosphate battery packs.

The move comes after Tesla slashed the prices of its electric cars earlier this month. The five-seat Y Long Range model qualifies for a tax credit after the cut, meaning it’s now $20,500 (over 30 percent) cheaper.