Ford’s CEO Jim Farley has publicly acknowledged significant missteps in the company’s electric vehicle (EV) rollout, openly praising Tesla’s efficiency and admitting to past internal biases. The admissions come amid ongoing financial losses within Ford’s Model e division, which reported a $4.8 billion EBIT loss for 2025.
Initial Miscalculations
Farley stated that if he could revisit the development of the F-150 Lightning, he would proceed differently, acknowledging a lack of foresight in early EV planning. He revealed a turning point came after a direct comparison with Tesla vehicles:
“When we ripped apart a Tesla… I was just absolutely flabbergasted. The Mach-E’s wiring harness was 70 pounds heavier and 1.6 kilometers longer. We didn’t know what was going on in [Tesla engineers’] minds.”
This realization highlighted Ford’s internal resistance to fully embracing EV-native design principles, particularly regarding wiring and battery integration. The CEO admitted the company initially favored familiar supply chains over optimal EV architecture, a decision that inflated production costs.
COVID & Supply Chain Disruptions
The pandemic and subsequent chip crisis further complicated matters, creating a temporary surge in demand that masked underlying inefficiencies. Farley explained:
“COVID totally was a false signal… If you could build a vehicle, you were going to sell it basically at 30 or 40 per cent higher prices than before COVID.”
This inflated demand allowed Ford to temporarily overlook the economic viability of its EVs, delaying crucial course correction. The company is now scaling back plans for certain models, including the F-150 Lightning, shifting towards extended-range EV (EREV) options.
China & Competitive Pressure
Farley also expressed surprise at the rapid advancements in the Chinese auto industry, admitting that Ford underestimated its competitors:
“Their cars went from clearly behind us to ahead of us… Nio had battery swapping. It was just shocking, frankly.”
The delayed travel restrictions during COVID contributed to this oversight, leaving Ford unprepared for the surge in innovation and government support within the Chinese market.
Future Strategy: Universal EV Platform
To address these challenges, Ford is developing a new “Universal” EV platform, aiming for affordability and simplicity. The first model, a Ranger-sized ute due in 2027, is targeting a base price under $30,000 and will feature a Level 3 autonomous driving system—a technology many automakers have abandoned due to cost and regulatory hurdles.
The shift in strategy underscores Ford’s belated recognition of the need for cost-effective, competitive EVs, signaling a willingness to learn from past mistakes and adapt to the evolving automotive landscape. The company faces an uphill battle as it attempts to regain lost ground against both established EV leaders like Tesla and rapidly advancing Chinese manufacturers.
