Ford CEO Expects Profitable $30,000 Electric Vehicle in 2.5 Years

Ford Motor CEO, Jim Farley, announced during the Aspen Ideas Festival that the company expects to release a profitable, all-electric vehicle priced at $30,000 within the next two and a half years. While Farley did not provide many details about the vehicle, he mentioned that it is being developed by a Ford “skunkworks” team and will likely compete with Chinese automakers like BYD and an anticipated entry-level car from Tesla.

Interestingly, Ford’s focus is currently on smaller EVs rather than larger electric trucks and SUVs. Farley believes that these larger vehicles, which have traditionally been profitable for the company, will not be able to generate significant profits in the EV market. He explained that the cost of batteries for these larger vehicles, such as Ford’s Super Duty models, is too high, making them financially unsustainable.

It’s worth noting that Farley’s comments about larger EVs not being profitable were specifically referring to vehicles like the Super Duty models or those that require massive battery packs to achieve long-range capabilities of around 500 miles. This does not include Ford’s current all-electric F-150 Lightning pickup or future EV models.

In a surprising statement, Farley emphasized the importance of Americans shifting their preference back to smaller cars. He acknowledged that a majority of Ford’s profits come from trucks but stated that society needs to fall in love with smaller vehicles once again, especially for widespread EV adoption. He mentioned weight as a major issue with larger vehicles and emphasized the need for a change in mindset.

Ford’s EV unit reported a loss of $1.32 billion in the first quarter of this year, equating to a loss of $132,000 per vehicle sold. Farley stressed the urgency of developing profitable EVs within the next five years as Chinese automakers continue to expand globally. If Ford fails to achieve profitability in the EV market, it could face serious challenges from competitors who already dominate the largest market in the world and have established global supply chains.

In conclusion, Ford is shifting its focus towards smaller, more affordable EVs in order to achieve profitability in the electric vehicle market. While larger EVs have historically been profitable for the company, the high cost of batteries makes them financially unsustainable. Ford’s CEO emphasized the need for Americans to embrace smaller cars once again and highlighted the importance of making profitable EVs to compete with global automakers. The company’s future success in the EV market will depend on its ability to adapt and meet the growing demand for affordable electric vehicles.