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Ford Rival Tesla May Build Less Expensive EVs After All

With global demand for EVs falling behind expected levels, automakers like Ford are shifting gears and dialing back their electrified ambitions somewhat. The Blue Oval – weary of cheap Chinese EVs and the threat they pose – is working on developing a low-cost EV platform set to underpin a crossover with a $25k price tag due to launch in 2026, one that was inspired by a trip CEO Jim Farley took to China some time ago. As for Ford’s chief EV rival – Tesla –  a recent report strangely claimed that the automaker had canceled plans to build a cheap EV of its own. However, CEO Elon Musk rebutted that claim during the company’s Q1 2024 earnings call.

“In terms of the new product road map, there’s been a lot of talk about our upcoming vehicle line in the next – in the past several weeks,” Musk said. “We’ve updated our future vehicle lineup to accelerate the launch of new models ahead, previously mentioned start of production in the second half of 2025. So, we expect it to be more like the early 2025, if not late this year.”

“These new vehicles, including more affordable models, will use aspects of the next-generation platform as well as aspects of our current platforms, and we’ll be able to produce on the same manufacturing lines as our current vehicle lineup. So, it’s not contingent upon any new factory or massive new production line, it will be made on our current production lines much more efficiently. And we think this should allow us to get to over three million vehicles of capacity when realized to the full extent.”

Plans for a cheap Tesla EV were originally announced back in 2020, when Musk noted that the company was targeting a model with a $25k price tag, just like Ford is now. However, until recently, booming sales for existing models seemingly put that plan on the back burner, though now, it seems to be back on as demand wanes. Regardless, feeling the crunch, Tesla recently announced that it was laying off around 10 percent of its workforce, and Musk also admitted that “if there are no trade barriers established, they [Chinese EV automakers] will pretty much demolish most other car companies in the world.”

We’ll have more on everything Ford’s competition is up to soon, so be sure and subscribe to Ford Authority for continuous 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. Tony

    A lot less profit with cheaper vehicles- the target for these vehicles, I’m thinking live in cities without access to home charging – – perhaps in other countries want EV’s or are happy with their government forcing them on them – however, seeing that as soon as free money( government incentives ) go away, sales collapse! In the US the common person isn’t buying for the whole EV thing

    Reply
    1. bob

      perhaps in other countries want EV’s ? You ever own one? Try a Tesla.

      Reply
    2. Ford Owner

      People living in cities don’t have home gasoline pumps either. If they had to go out to buy gasoline, they can do the same to recharge. This existed in several cities over a hundred years ago with the first EVs, many years before gasoline stations existed. So the lack of home charging is not an excuse anymore. Read about Claire Ford who only drove electrics and never drove any of her husband’s cars!

      Reply
  2. bob

    Go Tesla Go. Make something special. Keep leading the way and keep cutting prices.
    The latest Model 3 performance 0 to 60 in 2.9 seconds for under 50K with fed rebate.
    What a hot tamale.

    Reply
  3. Ford Owner

    If Ford and Tesla make the cheaper EV a reality, then we can keep domestic loyalty in EVs although we lost that loyalty in gas cars decades ago. Most American buyers (both North and South) buy imported cheap gas cars and never consider national loyalty, so I see them as traitors to all domestic brands and American manufaturing.

    Reply

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