In response, Farley launched Ford’s Model E division in 2022, a standalone unit solely focused on EVs, with new leadership and accountability aimed at speeding innovation. Despite posting over $5 billion in losses in 2024 and expecting similar losses in 2025, Farley remains undeterred, emphasizing the importance of facing challenges head-on and solving them transparently and quickly.
Ford CEO Jim Farley shared how dismantling Tesla and Chinese electric vehicles (EVs) revealed “shocking” insights that compelled him to radically rethink and overhaul Ford’s EV strategy. The wake-up call came as Ford engineers compared their Mustang Mach-E — the country’s second-best selling EV at the time — to Tesla’s Model 3, discovering critical inefficiencies. Farley noted the Mach-E had about 1.6 kilometers more wiring than Tesla’s EV, adding 70 pounds of unnecessary weight and driving up battery costs by roughly $200 per unit. This revelation exposed how far behind traditional automakers like Ford were in EV innovation.
Bullshit
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Ford CEO Jim Farley said on Tuesday that the U.S. is facing a "huge crisis" with its shortage of skilled labor.
"If you ask your local plumber and electrician…who is their next generation, they'll say 'I don't know,'" Farley said.
Watch the full interview at the… pic.twitter.com/jtmDiJzagP— Chris (@Chris490360) November 12, 2025
Farley highlighted the competitive pressure from Chinese EV makers such as BYD and Xiaomi, calling them an “existential threat” to American automakers. Chinese companies dominate global EV sales, notably accounting for over half of worldwide EV sales and growing rapidly in markets like Europe and South America. Farley even revealed flying a Chinese-made Xiaomi SU7 EV to the U.S. for personal use, despite heavy tariffs preventing its sale stateside.
Looking ahead, Ford plans to invest $5 billion to modernize its manufacturing, including launching a new affordable midsize electric pickup truck priced near $30,000 by 2027 to directly compete with Tesla and Chinese brands. Farley stressed that Ford cannot walk away from EVs in the U.S. or globally, emphasizing that only by rebuilding from the ground up can Ford hope to catch up.
Despite the recent cooling of U.S. EV sales after federal tax credits ended, Farley remains confident EVs will be central to Ford’s future success. His hands-on leadership and blunt acknowledgment of Ford’s shortcomings signal a bold, transparent approach designed to restore the company’s competitive edge in electric vehicles globally.