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Tesla CEO Elon Musk Thinks Overall Ford EV Strategy Is Sound

With Ford investing $50 billion in EVs with a goal of building two million of them worldwide by 2026, the automaker knew that it would have to bleed some profit in order to get to that point, given the fact that it was starting from ground zero. That proved to be the case in 2022, when The Blue Oval posted a multi-billion dollar loss from its Model e EV unit, though FoMoCo expects that same division to break even by 2024 and turn a profit by 2026. However, when Househack CEO Kevin Paffrath recently tried to pile on Ford via Twitter for its poor EV financial performance, the automaker received support from an unusual source – Tesla CEO Elon Musk.

Paffrath noted that Ford Model e’s net income came in at -40 percent versus a projected -20 percent margin, while Tesla’s net margin currently stands at 11.4 percent – a stark difference, indeed. However, Musk was quick to point out that he believes Ford’s EV strategy is “smart,” noting that the Ford F-150 Lightning is in high demand while also pointing out that margins for new vehicle lines are “always tough,” particularly when there are “major technology shifts.”

Ford F-150 Lightning Norway - Exterior 003 - Front Three Quarters

While Musk and Ford CEO Jim Farley have long had a history of exchanging pleasantries via this particular social media platform, Farley did recently note that he believes Tesla’s refusal to update its vehicles on a more regular basis – at least visually speaking – can also be a disadvantage. On the same token, Farley also praised the EV automaker’s ability to react quickly to changing market conditions in terms of slashing prices when demand falls.

Regardless, these two rivals will continue to emulate each other in a number of ways while battling for market share in a burgeoning space. That includes Tesla potentially building more physical locations in the U.S., as well as emulating one of Ford’s battery strategies.

We’ll have more on Ford’s EV strategy soon, so be sure and subscribe to Ford Authority for ongoing Ford news coverage.

Brett's lost track of all the Fords he's owned over the years and how much he's spent modifying them, but his current money pits include an S550 Mustang and 13th gen F-150.

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Comments

  1. Sam Davis

    There is a photo in the May 4 Ford Authority posting of a Mustang Mach e backing a boat trailer into the water. It was obviously pulling the trailer. I thought Ford did not recommend the Mach e pulling a even a light trailer. Has this changed?

    Reply
    1. Edward Snitkoff

      The Mach-E is rated for towing in Europe, but not North America.

      Reply
      1. Paul Benedict

        That was one reason I did not consider the Mach e. I need something that can pull a small utility trailer. If it could tow 2,400 lbs., I might have considered it.

        Reply
        1. Davido49

          I believe it can. We love our Mach-e GT. Went w/it after considering Tesla Model X. Both excellent but Fords EV SUV seemed more solid /better comfort /ride quality .

          Reply

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