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Jim Farley Says Tesla And Chinese Are Ford EV Cost Benchmark

Back in early February, FoMoCo revealed that a skunkworks team led by former Tesla exec Alan Clarke has been secretly working on developing a low-cost Ford EV platform for roughly two years now. This platform is slated to underpin a crossover set to launch in late 2026 with a price tag of around $30k, followed by a small pickup and dedicated rideshare vehicle, potentially. Since then, we’ve learned more about this cheap Ford EV effort from CEO Jim Farley himself, who shed some more light on the company’s cost benchmark targets recently.

“We are now more disciplined, and have to be, for capital and expense,” Farley said on Ford’s Q2 earnings call with investors. “And this means we will not launch vehicles at a loss that are not good for our business knowing what we know now about the reality of the market equation. And we clearly see China and Tesla as the cost benchmark.”

This news doesn’t come as a huge surprise given the fact that both Chinese automakers and Tesla have been building and selling EVs for years now, which gives both entities a big advantage in terms of finding ways to drive down costs, as well as capitalizing on economies of scale. Farley has also been quick to point out that Ford is targeting Tesla and China, specifically, with its under-development platform.

Farley also recently admitted that the company is betting itself on this future, low-cost Ford EV effort. The executive revealed that these smaller, cheaper models will offer up a tremendous amount of interior and cargo space thanks to smart packaging, with a focus on vehicles that consumers will use for work purposes, as well as adventure-focused models, to boot.

We’ll have more on Ford’s low-cost EV platform 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. bob

    Now you are listening to Tesla and China?
    Have you gone 48V? Reduce weight save on copper. Have you gone steer by wire? This way you can easily go left of right and drive to sell internationally. How about giga casts to make stiffer chassis that is easier to assemble. Maybe you can buy the Lucid EV motor and gear box design. Its the best. How about something like Tesla, you offer everything in the EV with minimal options so it can reduce costs by volume. I never expect Ford or GM to surprise me anymore. They seem like they are headed toward bankruptcy with late slow decisions.

    Reply
    1. J. Titus-A Ford Enthusiast

      Bro. you spoke some of the details i was thinking about: thank you: BOB

      Reply
  2. Ronald

    I have found following the compation was not a great idea. You find yourself always behid.

    Reply
  3. Dwayne D

    Will they be as cheaply made as the chinese? Or more? Probably more if thats possible. Be a leader not a follower. FORD IS DOOMED WITH THIS GUY.

    Reply
  4. Martin Scott

    We have a “secret” project. Let me tell you about

    Reply
  5. Ronald Keith

    We have a “secret” project. Let me tell you about the price is going to start at 25k oh sorry we meant 30k well looks like 40k.

    Reply
  6. Rob

    How can you use the Chinese and Tesla to produce a low cost vehicle?
    Chinese is junk and Tesla is extremely expensive!!
    Ford engineers scare the hell out of me. It seems they always add in a part that fails and costs an extreme amount of money to fix…..
    Look at your current vehicles Ford!!

    Reply

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