Ford CEO’s ‘Shocking’ Discovery from Tesla, Chinese EVs Spurs ‘Brutal’ Decision
Ford CEO Jim Farley made a surprising discovery while analyzing competitor vehicles, which led to significant changes at the legacy automaker. His examination revealed that the Ford Mustang Mach-E has approximately 1.6 kilometers or nearly one mile more wiring than Tesla’s Model 3. This insight, along with findings from dismantling Chinese electric vehicles (EVs), prompted Farley to take immediate action.
Impact of Electric Vehicles on Ford
In a recent podcast appearance, Farley shared details about the competitive landscape. He expressed how humbled he felt when first taking apart Tesla and Chinese models, stating, “It was shocking what we found.” This prompted a shift in strategy for Ford, which has historically struggled to keep pace with the rapid innovation driven by both Tesla and emerging Chinese companies.
Ford’s Electric Vehicle Strategy
To directly address the challenges posed by competitors, Farley established a new division called Model E in 2022. This initiative focuses on advancing Ford’s electric vehicle technology. However, the division faced a loss of more than $5 billion in 2024, highlighting the difficulties of venturing into the EV market. Farley acknowledged this financial strain and described the undertaking as a “brutal business-wise” endeavor.
Sales Trends and Future Plans
Despite these challenges, electric vehicle sales in the United States experienced a notable surge in 2025. Many consumers sought to purchase EVs ahead of the federal EV tax credit expiration at the end of September. According to Cox Automotive, EV sales reached an all-time high in the third quarter; however, Farley projected that EVs would only account for 5% of the U.S. car market in the near future.
Concerns Over Competition
Farley has raised concerns regarding the threat posed by Chinese auto manufacturers. He articulated this alarm in an interview with CBS Sunday Morning, labeling these companies as an “existential threat” to American automakers. He fears that they could potentially dominate the North American market.
Investment in Electric Vehicles
In response to these competitive pressures, Ford has reaffirmed its commitment to electric vehicles. In August, the company announced plans to invest $5 billion in enhancing its EV production capabilities. This includes updates to its manufacturing processes and modifications to its Kentucky plant, which is responsible for producing F-Series Super Duty trucks.
Looking ahead, Ford aims to create a $30,000 electric pickup truck for average consumers, expected to be available by 2027. As Farley emphasized, “We can’t walk away from EVs, not just for the US, but if we want to be a global company.” This commitment underlines Ford’s determination to maintain its relevance in the evolving automotive industry.
