Ford Motor Co. on Tuesday said it had cut prices on its Mustang Mach-E electric SUV by up to $8,100 after sales fell sharply in January.

The No. 2 U.S. automaker's lowest-price 2023 model year Mach E version now has a suggested retail price of $39,895, down from $42,995. The higher-end Mach-E GT spec will cost about $7,600 less, at $52,395. Other versions including the extended-range premium version will drop in price by $8,100 to $48,895.

Ford said the price cuts come as the automaker continues "to adapt to the market to achieve the optimal mix of sales growth and customer value."

CALIFORNIA EV SALES SEE FIRST DECLINE IN A DECADE: REPORT

The Dearborn, Michigan-based automaker said U.S. sales of the Mach-E fell by 51% in January to 1,295.

The Mach-E lost eligibility for a $3,750 tax credit on Jan. 1 after new U.S. Treasury Department battery sourcing requirements aimed at weaning the electric vehicle supply chain away from China took effect. Numerous other models also lost tax credits.

BIDEN ADMINISTRATION CONSIDERING EV SWITCH DELAY DUE TO WEAK DEMAND

Last week, Treasury told Reuters it has reimbursed auto dealers for about $135 million in advance point-of-sale consumer EV tax credit payments since the start of the year through Feb. 6. The Internal Revenue Service has received more than 25,000 time of sale reports, including more than 19,500 with advance payment requests.

Tesla's Model Y crossover, which competes with the Mach-E, starts at $42,990 before federal tax credits of $7,500.

The Elon Musk-led EV maker sparked a price war early last year in a bid to spur demand and grab more market share.

GET FOX BUSINESS ON THE GO BY CLICKING HERE

Ford and other legacy automakers have slowed their EV push to instead focus on higher-margin hybrid and gas-powered models.

Ford said in January it would reduce production of its F-150 Lightning pickup truck, cutting production at its Michigan Rouge Electric Vehicle Center to one shift starting April 1.