Ford lowered prices of its electric SUV Mustang Mach-E by up to $5,900 per vehicle on Monday, following Tesla’s global price cuts of 20% on its EVs. This caused Ford shares to close 2.9% lower at $12.89 amid high trading volume. Tesla shares also declined 6.3%. The price adjustments by Ford are due to the pressure faced by electric vehicle manufacturers in response to Tesla’s recent cuts.

Ford planned to ramp up Mach-E production at its Mexican plant from 78,000 in 2022 to 130,000 vehicles this year. In November, the company announced that it was accelerating Mach-E production and aiming for a global annual rate of 270,000 by the end of 2023, including its China operations. Ford manufactures the Mach-E in both Mexico and China. Analyst Garrett Nelson at CFRA Research stated that Tesla’s price cut was a significant setback for competing EVs, including the Mustang Mach-E which directly rivals Tesla’s Model Y.

Ford reduced prices by up to 8% on select Mach-E models and lowered the extended range battery price by 19%. The smaller price cuts, ranging from $600 to $900, apply to the lowest-priced models. These price reductions only apply to North America. Ford CEO Jim Farley stated on Twitter that increased production will shorten customer wait times and that cost reductions are being passed on to customers. In the U.S., Ford sold 39,458 Mach-Es last year, an increase from 27,140 in 2021.

GM announced Monday that it has no intentions to change prices in response to competitors. In June, the Detroit automaker decreased the price of the Bolt by $6,000 and up to 18% for the lowest-priced version. This month, the vehicle became eligible for the $7,500 federal tax credit.