Like Tesla, Ford also plans to build more affordable electric vehicles. Lukas Schulze/Getty Images
CEO Jim Farley spoke on a conference call about Ford’s plans to build a new line of affordable electric vehicles.
This came after Tesla also promised to accelerate its plans to build cheaper electric vehicles.
Automakers are scrambling to build more affordable electric vehicles as demand for electric vehicles has stalled.
This is a machine translation of an article from our US colleagues at Business Insider. It was automatically translated and checked by a real editor.
Ford has thrown down the gauntlet to Tesla by touting its upcoming range of cheap electric cars. Both companies are struggling with declining demand for electric vehicles. CEO Jim Farley confirmed in a conference call on Ford’s quarterly earnings that the company is working on new cheaper electric cars. Farley announced this after Elon Musk promised earlier this week to accelerate Tesla’s plans for affordable electric cars.
“We will increasingly rely on our new small, affordable platform being developed by our team on the West Coast,” Farley said. He told investors he believes Ford can build a profitable electric car priced between $25,000 and $30,000. This is a great “opportunity” for the company.
The automaker is targeting its push for affordable electric cars toward customers in cities and suburbs. This target group typically travels shorter distances and values affordability. “The cheaper we can make a great product, the more appealing it is to these mainstream EV adopters,” Farley added. Farley’s comments suggest that Ford will double production of cheaper electric cars.
The lack of such vehicles has proven to be a major obstacle to the transition to electric cars in the United States. The Ford boss has previously hinted that the auto giant is working on the next generation of electric vehicles at a lower price. He also told investors in February that Ford had built a “skunkworks team.” This was done to develop a “low-cost EV platform”. Bloomberg previously reported that the new platform would include a small pickup truck, a compact SUV and a potential ride-hailing vehicle. The first electric vehicle should cost around 25,000 US dollars (approximately 23,200 euros) and come onto the market at the end of 2026.
A profitable $25,000 electric car could have a big impact on Ford’s current electric car lineup. The Detroit automaker recorded losses of around $132,000 per electric car sold in the first three months of 2024. This came amid an intense price war between electric vehicle companies. Many of these manufacturers are pursuing their own ambitions for cheaper electric vehicles as demand for more expensive models has stalled.
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Tesla announced on Tuesday that it would accelerate plans to introduce “new and cheaper products.” The announcement came after reports of Elon Musk’s preference for a self-driving robotaxi over a long-rumored $25,000 electric car sparked concern among investors.
VW also has plans for a cheap electric car variant. The idea behind the so-called “Amsterdam” project: A small electric car under 20,000 euros, thanks to the collaboration between VW and the French car manufacturer Renault. However, VW is not making any real progress with this – the works council recently put the brakes on the project.
Ford did not immediately respond to a request for comment outside of normal business hours.
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