The Zhitong Finance App learned that Ford Motor Company (F.US) said on Tuesday that due to a sharp drop in sales in January, the company had cut the price of its Mustang Mach-E Mustang electric SUV by up to $8,100.

The minimum price for the 2023 Mach E model from the second-largest US automaker is now $39,895, compared to the previous price of $42,995. The price of the high-end Mach-E GT model will also be reduced by about $7,600 to $52,395. The price of the other versions, including the extended premium version, will drop by $8,100 to $48,895.

Ford said the reason for the price cut is that the company will continue to “adapt to the market to achieve the best combination of sales growth and customer value.”

The automaker, headquartered in Dearborn, Michigan, said Mach-E sales in the US fell 51% to 1,295 units in January.

As of January 1, Mach-E lost the $3,750 tax credit due to policy changes. Many other models have also lost their eligibility for the tax credit.

Last week, the US Treasury Department said that from the beginning of this year until February 6, the Treasury has repaid approximately $135 million in advance consumer electric vehicle tax credit payments at the point of sale to car dealers. The US Internal Revenue Service has received more than 25,000 sales time reports, including more than 19,500 advance payment requests.

The Tesla (TSLA.US) Model Y crossover that competes with the Mach-E starts at $42,990, and the federal tax credit is $7,500.

Electric vehicle manufacturers led by Musk launched a price war early last year to boost demand and gain more market share.

Ford and other traditional automakers have slowed their electric vehicle push and are instead focusing on higher-margin hybrid and gasoline-powered models. The company said in January it would reduce production of its F-150 Lightning pickup truck and cut production at the Rouge Electric Vehicle Center in Michigan to one shift starting April 1.

Ford closed down 0.41% to $12.25 by Tuesday's close.