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Ford CEO Says Tesla, Chinese EV Teardowns Exposed Cost Gap, Forcing Strategy Reset

Jim Farley now prioritizes cheaper, more efficient EVs after engineers found design inefficiencies such as excess wiring in the Mustang Mach‑E.

Overview

  • On the Office Hours: Business Edition podcast this week, Farley called the teardown findings “shocking” and said they humbled leadership.
  • Engineers found the Mustang Mach‑E used about 1.6 kilometers more wiring than a Tesla Model 3, increasing weight and requiring a larger, costlier battery.
  • The discoveries helped drive Ford’s 2022 creation of its Model E division, which Farley says will keep investing despite losses of more than $5 billion in 2024.
  • Ford is pivoting to lower-cost platforms, with a roughly $30,000 midsize electric pickup planned for 2027 and reported plans to use CATL-licensed LFP batteries built in Michigan.
  • Farley warned Chinese brands pose an “existential threat,” as Ford trims near-term U.S. EV expectations to about 5% and pauses F‑150 Lightning production, with the Wall Street Journal reporting Ford is considering discontinuing the model.