So what’s your solution if it’s that simple?

Morgan20 showed the calculations that prove every Mustang is CAFE negative meaning it has to be offset by other vehicles.  Ford would never admit that publicly.  Publicly they said they thought sales and pricing were in a sweet spot.  Read between the lines.

I don’t understand the logic.  The s650 is considered a 7th generation Mustang.  It’s the only generation in the history of the Mustang that has carried over the greenhouse.  So yeah, like it or not, it’s a refresh (even the interior outside of the IP/dash is mostly carryover).  Look, I love the s650 and think it’s better than the “previous gen”, but I am hoping for something more revolutionary in the next gen design.  

Can’t wait for the suv EV version. BOSS-E sounds like a good name 😆

To be fair, it's been this way with mustang for decades. A big design change, followed by another generation with similar styling, so two similar back to back generations, then another big leap in terms of design. It was that way with the mid 90s and the new edge mustangs, the '05-'09, and 2010-14 cars, and now s550 and s650.    My guess is whatever follows s650 will take another huge leap in design. 

To me the Cybertruck customer is more the full size suv crowd than the truck crowd. 

New design usually attracts buyers, but after initial excitement, cost/value plays a major role as we all know.  IMO data in link below addresses your question for the most part.  Comparing the Mustang GT Premium Fastback over recent years it appears higher prices correlate with lower sales.  I’m not questioning whether Ford should or should not lower prices, or even if they can.  My personal preference is that Mustang not be allowed to become irrelevant or worse extinct.   https://www.cjponyparts.com/resources/mustang-prices-through-the-years

Lightning was more successful even though it sold in a relatively low number as it is related to F-Series while Cybertruck is a bespoke vehicle with little to do with the rest of the Tesla line. Rivian is starting to turn a profit at the lower numbers.

Henry? 😀   In that case better find a way around CAFE limitations so selling higher volume makes sense.

It’s not due to CAFE either according to Said Deep (it’s due to supply constraints if you recall).  Folks can speculate all they want, but Ford would gladly sell every Mustang (Mach-E included) they can build.  There are many factors for the decline in sales for an “all new model”.