Ford to Develop Affordable Electric Vehicle to Compete with Tesla Model 3

Will Ford’s new affordable electric vehicle be the game-changer the company needs to compete with Tesla?

Ford CEO, Jim Farley, announced during the Aspen Ideas Festival that the company is working on a US$30,000 electric vehicle (EV) that will be available in US showrooms by 2027. The new EV, which will be smaller in size, aims to undercut the Tesla Model 3 in terms of price.

During an interview with CNBC, Jim Farley explained that Ford is shifting its focus towards smaller EVs following significant losses in the EV business. By investing in smaller, more affordable EVs, Ford hopes to achieve profitability in the future.

Farley emphasized the importance of smaller vehicles for society and EV adoption, highlighting the challenges posed by large and heavy EVs. According to Farley, the high cost of batteries is a major hindrance to profitability in the EV market.

Ford’s current EV lineup consists of medium-to-large vehicles, including the Mustang Mach-E SUV, F-150 Lightning ute, and E-Transit van. However, the company recognizes the need to introduce cheaper, entry-level EVs to compete with global market leaders and secure its future in the industry.

To achieve this goal, Ford plans to launch a US$30,000 EV that will be more affordable than the Tesla Model 3. By offering a smaller and more cost-effective option, Ford aims to attract a wider range of customers and increase EV adoption.

In addition to developing the new affordable EV, Ford is also collaborating with Volkswagen to introduce the Volkswagen MEB platform-based Explorer mid-sized crossover in Europe this year. The company is committed to expanding its EV portfolio and staying competitive in the global market.

Ford’s decision to prioritize smaller EVs reflects a strategic shift in the company’s approach to electric mobility. By focusing on affordability and addressing market demands, Ford aims to secure a profitable future in the EV industry.

• Ford plans to develop a US$30,000 EV to compete with the Tesla Model 3
• The new EV will be smaller in size
• Ford aims to prioritize smaller, more affordable EVs
• The company is targeting a profitable electric portfolio

Ford’s upcoming affordable electric vehicle is set to challenge the Tesla Model 3 with its competitive price and smaller size. The company’s decision to prioritize smaller, more affordable EVs reflects a strategic shift towards profitability and market demand. With this new direction, Ford aims to secure its position in the growing electric vehicle industry.