Ford CEO Jim Farley

SPENCER PLATT—GETTY IMAGES

Ford Motor Co. cut the price of its electric Mustang Mach-E by as much as $8,100 after its sales tumbled 51% in January when the automaker had to stop offering tax incentives on the plug-in model.

The automaker lowered prices on multiple versions of the 2023 model Mach-E by a range of $3,100 to $8,100, according to an emailed statement Tuesday. The battery-powered crossover SUV that Ford makes in Mexico now starts at $39,895, down from $42,995. The biggest discount is offered on several versions, including the high-end premium model with an extended range battery, which now starts at $45,895.

Amid an industrywide slowdown in demand for electric vehicles, Ford’s EV sales fell 11% in January. On Jan. 1, the Mach-E lost its eligibility for a $3,750 US tax credit as the Biden administration tightened rules on stimulus measures to prevent EV makers from sourcing battery materials from China and other foreign adversaries. Ford also is cutting production of the Mach-E and the F-150 Lightning plug-in pickup truck.

“We are adjusting pricing for 2023 models as we continue to adapt to the market to achieve the optimal mix of sales growth and customer value,” Ford said in the statement.