Ford Motor Company, the iconic American carmaker, has announced a price cut on its all-electric Mustang Mach-E in response to Tesla’s lead in the electric vehicle (EV) market.

The Mustang Mach-E, which was launched in December 2020, has seen its starting price drop from $43,895 to $39,995. Ford has also revealed plans to increase production of the model to 130,000 units in 2021, up from its original target of 50,000.

The price cut comes as Tesla continues to dominate the EV market, with the company’s Model Y accounting for more than half of all EV sales in 2020. Ford’s move is seen as a direct response to Tesla’s success and an effort to remain competitive in the EV market.

Ford CEO Jim Farley said the company would “not cede” the EV market to its competitors, noting that the Mustang Mach-E was designed to be a “true Mustang” and that the company was committed to making it accessible to more people.

The Mustang Mach-E is a crossover SUV that has a range of up to 300 miles on a single charge. It has a 0-60 mph time of 3.5 seconds and is equipped with a range of advanced driver-assistance systems, including adaptive cruise control and lane-keeping assist.

The Mustang Mach-E is available in four trim levels and can be purchased with either rear- or all-wheel drive. It is also eligible for up to $7,500 in federal tax credits.

Ford’s move to cut the prices of the Mustang Mach-E is seen as a positive step for the company and a sign that it is taking the EV market seriously. It remains to be seen whether the price cut will be enough to help Ford compete with Tesla in the EV market.