Ford CEO Jim Farley has revealed new insights into how the American automaker plans to survive in the competitive electric vehicle (EV) market. After what he described as a “shocking” discovery while dissecting rival electric cars from Tesla and leading Chinese manufacturers, Farley admitted Ford had to make tough choices to stay relevant in the global EV race.
Ford’s Wake-Up Call: Learning from Tesla and Chinese EVs
Farley explained that Ford engineers disassembled vehicles from Tesla and several Chinese automakers, a common industry practice. What they found was startling. Ford’s Mustang Mach-E contained nearly a mile more wiring than Tesla’s Model 3 — a sign of inefficiency that could drive up costs and reduce performance. Similar findings emerged when engineers examined vehicles from China’s booming EV sector.
“I was very humbled when we took apart the first Model 3 Tesla and the Chinese vehicles. When we took them apart, it was shocking what we found,” Farley said during an episode of Office Hours: Business Edition.
This revelation led to significant structural and design changes inside Ford, influencing how it builds electric vehicles under its Model E division.
A Tough Road for Ford’s Model E Division
The Model E division, launched in 2022, was designed to help Ford innovate faster in the EV market. However, innovation came with heavy costs. The unit reportedly lost more than $5 billion in 2024, but Farley emphasized that he expected challenges from the beginning.
“My ethos is to take on the hardest problems as fast as you can — sometimes in public — because you’ll solve them quicker that way,” he said. Farley highlighted the importance of transparency, noting that shareholders and customers must see Ford’s efforts to transition into the EV era.
Despite financial setbacks, Ford’s leadership believes that investing heavily now will prepare the company for a profitable future when the global market pivots toward full electrification.
The Rise of Chinese EV Makers: A Global Threat
In a recent CBS interview, Farley warned that Chinese electric carmakers pose an “existential threat” to Western automakers. Chinese brands have made rapid progress in both design and affordability, giving them a major advantage in mass-market EV sales. Farley stated that these companies could easily dominate North American markets if domestic automakers do not accelerate innovation and cost reduction.
Still, Farley made it clear that Ford has no plans to retreat. “We can’t walk away from EVs, not just for the U.S., but if we want to be a global company, I’m not going to just cede that to the Chinese,” he insisted.
Ford’s Plan for the Future: A $30,000 Electric Pickup
Ford is taking bold steps to stay competitive. In August, the company announced a $5 billion investment in EV production, including revamping its Kentucky facility responsible for the iconic F-Series Super Duty trucks. The highlight of this plan is a $30,000 electric pickup truck aimed at the average consumer — expected to hit the market in 2027.
This vehicle could mark a turning point for Ford, allowing it to reach budget-conscious customers who have so far been priced out of EV ownership.
U.S. EV Market Outlook for 2025
According to Cox Automotive, U.S. EV sales hit record highs in 2025 as customers rushed to buy before the federal tax credit expired in September. Despite this growth, Farley remains cautious. He predicts EVs will make up only 5% of the U.S. car market in the near term, showing that mass adoption still faces economic and infrastructure challenges.
However, Ford remains optimistic that the industry’s evolution will eventually balance cost, technology, and consumer demand — a balance the company aims to strike first.
The Bottom Line
Jim Farley’s candid comments reflect a pivotal moment in Ford’s history. The company’s willingness to confront inefficiencies and double down on innovation underscores its determination to remain a major global player in the electric era. With pressure mounting from both Tesla and China, Ford’s next moves could define the future of American automotive manufacturing.
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