Ford falls after it slashes the price of the Mustang Mach-E in response to Tesla's recent price cuts

• Shares of Ford fell on Monday after it became the first automaker to respond to Tesla's recent price cuts.

• The company slashed the price of its electric Mustang Mach-E by as much as 9% for certain trims.

• "We are responding to changes in the marketplace... We want to stay competitive," Ford said.

Ford stock fell on Monday after it became the first automaker to respond to Tesla's recent electric vehicle price cuts.

Ford is dropping the price of its electric Mustang Mach-E by as much as 9%, depending on the trim. The average price cut across all of its trims is about 6%. The GT Extended Range Mustang Mach-E will now cost about $64,000, a drop of nearly $6,000.

Shares of Ford fell as much as 2% in Monday trades, while shares of Tesla fell as much as 3%.

Ford also said it would be expanding the production capacity of its Mustang Mach-E this year. The company now expects to produce 130,000 this year, up from a prior target of 78,000.