Key Takeaways
- Ford planning low-cost EV platform to rival Tesla, delayed large SUV for budget-friendly pickup and SUV by late 2026.
- Ford aims for new EVs to arrive in showrooms with a $25,000 MSRP, using lithium iron phosphate battery packs initially for cost savings.
- Ford’s goal is for new EV project to turn a profit within a year of hitting the market, with insight from former Tesla executive Alan Clarke.
During Ford’s Q4 earnings call, Ford CEO Jim Farley announced that a skunkworks team was developing a low-cost EV platform with which to take on Tesla and Chinese manufacturers. According to Bloomberg, Ford’s focus on the new platform has meant delaying its plans for a large seven-seat electric SUV, but the good news is that an all-new, budget-focused electric pickup and an SUV will appear as soon as 2026. Okay, late 2026. If no other delays and costs arise, it is hoped that the first of these new EVs will arrive in American showrooms with a $25,000 MSRP.
Tesla has been promising something similar for years, and if Ford can break into the affordable EV market first, it will have a huge advantage.
Similar Claims To Tesla
Tesla CEO Elon Musk has claimed that his company’s most affordable car could earn owners money as an autonomous robotaxi, and according to Bloomberg, Ford has similar plans for “potentially, a vehicle that could be used for ride-hailing.” It’s unclear what shape this would take, but it appears that this may be a third body style. A van, perhaps?
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Several battery technologies exist, but lithium iron phosphate (LFB) battery packs will be used on this platform initially, saving an estimated 30% versus traditional lithium-ion batteries. As other options become more affordable, the chemistry may change, potentially making the vehicles cheaper still.
High Hopes
Farley is adamant that this project must succeed and must “turn a profit within a year of hitting the market,” but how will that be achieved when Ford lost over $36,000 per EV during last year? Tesla ingenuity should help.
Alan Clarke joined Ford from Tesla in 2022, leading the affordable Ford EV project after spending well over a decade developing the Tesla Model Y. That’s the world’s best-selling EV, so if anyone has the correct insights into affordable mass production, it should be Clarke.
