Ford is relying on cheap electric cars to convince skeptics

Ford has given Tesla a run for its money by announcing its next range of affordable electric cars. Both companies are struggling with declining demand for electric vehicles. CEO Jim Farley confirmed in Ford’s quarterly earnings conference call that the company is working on new, affordable electric vehicles. Farley made the announcement after Elon Musk promised earlier this week to accelerate Tesla’s plans for affordable electric cars.

“We will increasingly rely on our new small and affordable platform developed by our team on the West Coast,†Farley said. He told investors he believed Ford could make an electric car priced between $25,000 and $30,000. This is a big “opportunity” for the company.

The automaker is targeting its push for affordable electric vehicles at customers in cities and suburbs. This target group typically travels short distances and affords value. “The more affordable we can make a better product, the more attractive it is to these mainstream EV consumers,” Farley added. Farley’s comments suggest that Ford will produce twice as many affordable electric cars.

The lack of such vehicles has been seen as a major obstacle to the transition to electric vehicles in the United States. Ford’s boss has previously hinted that the car giant is working on the next generation of low-cost electric cars. He also told investors in February that Ford had created a “skunkworks team.” This was done to develop a “low-cost EV platform”. Bloomberg previously reported that the new platform would include a small truck, a small SUV and a drivable car. The first electric car should cost around 25,000 US dollars (around 23,200 euros) and come to the market at the end of 2026.

The $25,000 electric car could have a big impact on Ford’s current electric car lineup. The Detroit automaker recorded a loss of nearly $132,000 per electric car sold in the first three months of 2024. This came amid a fierce price war between electric car companies. Many of these manufacturers are pursuing their ambitions for affordable electric cars as demand for expensive models has stagnated.

Read too

Ford is losing $1.5 billion because too few customers are buying electric cars – now they’re rethinking.

Tesla announced Tuesday that it will accelerate plans to introduce “new and affordable products.” The announcement came after reports of Elon Musk’s preference for self-driving robots over the long-rumored $25,000 electric car sparked concern among investors.

VW also has plans for a cheaper variant of the electric car. The idea behind the project called “Amsterdam”: 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 on it project.

Ford did not immediately respond to a request for comment outside regular business hours.