Ford Motor Company has reported a net income of $1.8 billion for the first quarter of 2021, thanks to strong demand for its trucks and SUVs, and to a lesser extent, the successful launch of its electric Mustang Mach-E crossover SUV. As a result of this positive financial performance, the American automaker has announced that it will reduce prices on its electric vehicles (EVs), including the Mustang Mach-E, to remain competitive in the EV market.

The announcement comes as competition in the EV market heats up, with companies like Tesla and General Motors making significant investments in their EV programs. Ford’s move to cut prices on its EVs is seen as a strategic move to gain an edge in this increasingly crowded market.

In particular, Ford’s Mustang Mach-E will see a $3,000 reduction in price for the entry-level model, making it more affordable for consumers. The price cut is expected to make the Mach-E more competitive with the Tesla Model Y, which has seen strong sales since its launch.

Ford’s CEO, Jim Farley, said in a statement, “We’re pleased with the strong demand we’re seeing for our products, particularly our pickups and SUVs. We’re also seeing great interest in our electric vehicles, and we’re committed to making them more affordable for customers.”

The move to reduce prices on its EVs is also part of Ford’s broader plan to become a leader in the EV market. The company has announced plans to invest $22 billion in EVs and autonomous vehicles through 2025, and to have 40% of its global vehicle volume be all-electric by 2030.

However, some analysts have raised concerns about Ford’s ability to compete in the EV market. While the company has seen some success with the Mach-E, it still lags behind Tesla in terms of overall EV sales and brand recognition. Additionally, Ford has faced production delays and quality control issues with its EVs, which could limit its ability to capture market share.

Despite these challenges, Ford’s recent financial performance and commitment to EVs have been well-received by investors. The company’s stock has risen more than 50% over the past year, and analysts have praised its strategic focus on the EV market.

As the EV market continues to grow and become more competitive, it remains to be seen whether Ford’s price cuts and EV investments will be enough to help the company become a major player in this space. However, with strong financial performance and a commitment to innovation, Ford appears to be well-positioned to compete in the rapidly-evolving automotive industry.