Ford CEO Jim Farley says Americans won’t pay a $30,000 premium for big-battery EVs, revealing plans for a $30,000 electric model to rival Tesla and BYD.
Ford pivots to affordable EVs as US buyers shun high-priced models
Ford CEO Jim Farley admits U.S. buyers aren’t willing to pay $75,000 for an electric vehicle.
“We’ve learned that people aren’t going to pay $30,000 up front for a big battery in a $50,000-$60,000 car,” Farley said at the Ford Pro Accelerate conference in Detroit.
“But they’ll buy a $30,000 EV if it saves them at least $2,000 a year on fuel.”
Such comments show how price sensitivity is shaping demand for electric vehicles. Despite growing global interest, affordable EV models will determine the success of brands.
Stepping out of Tesla’s shadow and a new rival — BYD
Farley acknowledged that Ford remained “No. 2 behind Tesla” for three years, but now the company wants to step out of that shadow.
He added that the new strategy is focused not only on the US market, but also on global competition with China’s BYD, which in 2024 overtook Tesla in revenue — $107 billion to $97.7 billion.
“BYD has the full support of the Chinese government. They’ve been working on this for 20 years and have great intellectual property.
Ford has to catch up with BYD because we’re a global company,” Farley stressed.
Bet on a “universal platform”
Ford is preparing a new universal platform for electric vehicles, focused on affordability and the mass market.
The goal is to create a $30,000 EV that combines performance, design and cost-effectiveness.
“We’ve rethought capital, learned lessons and are now moving faster. We need to be future-proof to keep up with BYD,” Farley said.
He compared the transformation of the auto industry to the smartphone revolution after the iPhone: “When new technology comes along, everything changes.”
Analysts: Ford is taking a realistic path
According to JPMorgan, Ford’s strategy is in line with market realities: the main thing is to minimize losses from the EV direction.
Goldman Sachs added that success depends on how successfully the company transitions to hybrids and electric vehicles.
Related: Stellantis to invest $10 billion in U.S. to revive Jeep, Ram
