Ford CEO Jim Farley says dismantling Tesla and Chinese-made EVs was a wake-up call that reshaped how the veteran automaker is taking on the electric transition.
Speaking on the Office Hours: Business Edition podcast, Farley admitted he was “humbled” after learning how far ahead Tesla and China’s automakers were in design and efficiency. The revelation, he stated, convinced him that Ford had to rethink everything from engineering to strategy.
Teardowns and tech gaps
“I was very humbled when we took apart the first Model 3 Tesla and started to take apart the Chinese vehicles. When we took them apart, it was shocking what we found,” Farley told host Monica Langley, as noted in an Insider report.
He noted that Ford’s Mustang Mach-E had roughly 1.6 kilometers more electrical wiring than Tesla’s sedan, making it heavier and more expensive to build.
The experience pushed Farley to launch Ford’s Model e in 2022, a dedicated EV division focused on competing with tech-driven automakers. Although Model e lost more than $5 billion in 2024 and is expected to face similar losses this year, Farley said he has no regrets.
“I knew it was going to be brutal business-wise. My ethos is, take on the hardest problems as fast as you can and sometimes do it in public because you’ll solve them quicker that way,” he said.
Farley has led Ford since 2020, during which he’s pushed the company to adopt leaner designs, modernized software systems, and faster EV production cycles inspired by Tesla’s model.
Urgency in Ford’s global push
Farley has repeatedly warned that Chinese EV makers such as BYD now pose an “existential threat” to legacy carmakers. He described Chinese electric vehicles as “far superior” and said their expansion overseas highlights how quickly the landscape is changing.
“We can’t walk away from EVs,” Farley said. “Not just for the US, but if we want to be a global company, I’m not going to just cede that to the Chinese.”
Still, the U.S. market remains challenging. Farley expects only about 5% of domestic car sales to be electric in the near term, as buyers demand more affordable models. To meet that shift, Ford plans a $30,000 midsize electric truck for 2027.
“We now know that the EV market in the US is totally different than we thought,” Farley stated.
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