Ford Motor Co announced on Monday it was slashing prices on its Mustang Mach-E weeks after Tesla cut prices by up to 20% globally.  The price cut averages out to around a 6% cut or around $5,900 per vehicle.  It’s a whiplash-like turn around,  just six months ago Ford had raised the price of its flagship EV and committed to increasing production at its plant in Mexico to 130,000 vehicles from 78,000 in 2022. The automaker's latest move comes amidst EV manufacturers feeling pressure from Tesla's price cut

"Ford just cut Mustang EV prices in response to Tesla’s price cut. Mini price war about to begin with EVs in the US with Tesla’s shot across the bow on price cuts," said Dan Ives, an analyst at Wedbush Securities, on Twitter.

Like the Tesla price cuts, Ford’s price reduction will make one additional version of the Mach-E eligible for a $7,500 federal tax credit, which requires the Ford EV to have a suggested retail price of no more than $55,000 . Ford has also cut the price of the extended range battery by about 19%. The Ford price cuts only impact North American prices.

"Tesla’s price cut was a major blow to the prospects of competing EV models and the Mustang Mach-E directly competes with Tesla’s Model Y," said Garrett Nelson, an analyst at CFRA Research. GM said Monday it had no plans to adjust prices in response to other company price cuts. The Chevy Bolt saw price cuts in June by around $6,000 and by as much as 18% for the lowest-price version and earlier this month the vehicle became eligible for the $7,500 federal tax credit.

Shares of Ford closed down 2.9% in above average trading to $12.89. Tesla fell 6.3%.