Ford to launch $30,000 electric car, aims to be profitable within two and a half years According to foreign media reports, Ford CEO Jim Farley recently announced that the company plans to introduce a $30,000 electric car and intends to be profitable in approximately two and a half years. Farley did not reveal many details about this Ford “development department” developed model, but he stated that Ford’s main competitors for this model will be Chinese car manufacturers like BYD or the entry-level model that American electric car leader Tesla is about to launch. Farley stated that Ford has decided to prioritize the development and production of small electric cars, rather than large electric pickups and SUVs, even though gasoline SUVs and pickups have always been the company’s profit engine, the electric versions are difficult to make money. Farley said in an interview with CNBC’s Julia Boorstin, “In order to achieve profitability growth for electric cars, automakers must make fundamental changes, the first thing to do is to invest all capital in smaller, more affordable electric cars. Large electric cars are difficult to make money because the battery costs $50,000, which is hard to afford.” Farley stated that it is crucial for Ford to achieve profitability for electric cars in the next five years, as Chinese car manufacturers are expanding globally and have established a supply chain worldwide. “If Ford electric cars cannot be profitable in the next five years, then Ford cars may be limited to the North American market in the future.” Farley reiterated that Ford’s next generation of cars will be profitable. He also stated in a declaration that Americans need to fall in love with small cars again instead of large cars, which is crucial for promoting decarbonization and the development of electric cars in American society. “Americans love these large cars too much, but weight is a big issue.” This statement is surprising because most of Ford’s profits come from trucks, and historically American car manufacturers have struggled to make a profit on small car models. Another Ford spokesperson later clarified that Farley was referring to large vehicles like the Ford Super Duty or electric cars that require a large battery pack to achieve a 500-mile range. Farley was not referring to models like the current Ford F-150 Lightning all-electric pickup truck.
In the first quarter of this year, Ford’s electric vehicle division sold 10,000 cars and lost $1.32 billion. Despite including software and other EV-related businesses, the losses amount to $132,000 for each electric car sold by Ford.