Ford Plans Affordable EV Models and Promises Profitability

Chris Teague
by Chris Teague

Ford hasn’t had the best luck with profitability on its electric vehicle business, but the automaker is not shying away from aiming at the cheaper end of the EV spectrum. CEO Jim Farley recently confirmed that the company would purse sub-$30,000 electric models with its next-generation product line, and said that its existing models would become better in the meantime.

Farley noted that company executives are aware of buyers’ desire for more affordable EVs, noting Ford’s recent price cuts on the Mustang Mach-E, which gave the SUV a striking sales bump. The automaker’s hybrid models are quite popular, however, driven to a large degree by its expansive fleet business.

Ford’s gas-vehicle business, particularly its trucks, continues to generate strong revenues, giving it an advantage over electric-only automakers like Tesla, which has reportedly wavered in its desire to create an affordable electric car. Despite its struggles with EV profitability, the company feels confident that its lower-cost models won’t push it further into the red, as Farley expressed his belief that Ford would figure things out in the next few years.

CEO optimism is nothing new, as it’s often the only thing propping up companies’ stock prices. Tesla CEO Elon Musk recently announced a robotaxi program that will debut in August but also noted that the company would focus on accelerating more affordable model development. At the same time, it’s unclear how Ford plans to reach profitability with cheaper vehicles, as it’s slowed investments in new factories and other related areas.

[Image: Ford]

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Chris Teague
Chris Teague

Chris grew up in, under, and around cars, but took the long way around to becoming an automotive writer. After a career in technology consulting and a trip through business school, Chris began writing about the automotive industry as a way to reconnect with his passion and get behind the wheel of a new car every week. He focuses on taking complex industry stories and making them digestible by any reader. Just don’t expect him to stay away from high-mileage Porsches.

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4 of 59 comments
  • V8-1 V8-1 on Apr 26, 2024

    Go hybrid and wait for Toyota to finish its hydrogen engine and generator/separator.

    • See 1 previous
    • Jalop1991 Jalop1991 on Apr 28, 2024

      Jesus, Vo5. You must be a hoot at parties.

  • Scott Scott on May 22, 2024

    So they are losing hundreds of millions of dollars and they are promising us a “Cheaper EV”? I wonder how that will look and feel? They killed the Fiesta because they claimed that they couldn’t make a profit on them and when I bought the first one in late 2010 they couldn’t deliver the accessories I wanted for it! Then I bought a 2016 Fiesta ST and again couldn’t get the accessories for it I wanted. They claimed that the components were going to be available, eventually. So they lost on that one as well! I don’t care about what they say anymore. I’ve moved on to another brand.

  • Jkross22 It very much depends on the dealer. Just bought a replacement for the CX9. A local dealer gave a $500 discount on a CPO car while another one gave a few thousand dollar discount but was out of the area and we had to drive 5 hours to get. The local dealer still seems to think it's 2022 and cars appreciate when sitting on the lot. I wish them luck.
  • Ajla "and the $34K price doesn't seem too steep." Respectfully disagree. This would be okay at $29K. $34k clangs into way too much.
  • FreedMike i puUut pUniZhR sTikKr oNn mY KoMMpAs aNd nOW i hEeR Eegle SkReem. (And no one knows it's made in Mexico.)
  • SCE to AUX What a farce.Besides, "patriotism" has been redefined a hundred different ways in the last 20+ years. Disagree with one of them, and you're a traitor.And for starters, Jeep is a Stellantis brand with its HQ in the Netherlands. If this persistent myth about patriotism is ever cracked, the brand is doomed.
  • MaintenanceCosts I'm definitely seeing more dealer-level discounts than I did a year ago, but not a lot of lower MSRPs.