Ford hopes that affordable electric cars can win over EV skeptics – like Tesla

• CEO Jim Farley talked about Ford’s plans to create a new range of affordable EVs in the earnings call.
• It comes after Tesla also promised to speed up its plans to build affordable electric cars.
• Automakers are scrambling to build affordable EVs as demand for electric vehicles declines.

Ford has thrown down the gauntlet to Tesla by hinting at its upcoming range of affordable electric cars, with all the companies battling it out reduce demand for EVs.

CEO Jim Farley confirmed in Ford’s Q1 earnings call that the company is working on new affordable EVs that could sell for under $25,000 to $30,000, after Elon Musk vowed to do so. accelerating Tesla’s affordable EV plans earlier this week.

“Increasingly, our bet will be on our new low-cost platform developed by our team on the West Coast,” Farley said.

Farley told investors he believes Ford can make an EV priced between $25,000 and $30,000 that is profitable, describing it as a “huge opportunity” for the company.

He said that the company aims to push the car at an affordable price to urban and suburban customers, who tend to drive short distances and prioritize affordability.

“The more affordable we can make a better product, the more attractive it is to these mainstream EV users,” Farley added.

Farley’s comments suggest Ford is doubling down on making affordable EVs, of which there seems to be a lack. a major obstacle for many people to go electric in the United States.

Ford’s boss has previously hinted that the car giant is working on next-generation low-cost electric vehicles, told investors in February that Ford had formed a “skunkworks team” to “build a low-cost EV platform.”

Bloomberg previously reported that the new platform will include a small pickup, a small SUV, and a convertible, and the first EV will cost around $25,000 and launch in late 2026.

A profitable $25,000 EV could replace Ford’s current electric system, with the Detroit automaker losing nearly $132,000 every EV sold in the first three months of 2024 in the middle of a bad price war among electric vehicle manufacturers.

Most of those manufacturers are following their desires for cheap EVs like demand for expensive models has stalled.

Tesla announced Tuesday that it will accelerate plans to launch “new and affordable products,” after reports that CEO Elon Musk has decided prioritize automated robotics on the long-rumored $25,000 electric car concern among investors.

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