Ford CEO Jim Farley Says Buyers Prefer $30,000 EVs Over $75,000 Utility Vehicles: Report

Ford Motor Co. (F) CEO Jim Farley reportedly stated on Wednesday that buyers in the U.S. prefer a $30,000 electric vehicle over utility vehicles, which cost $75,000 but offer a larger battery.

In an interview with Yahoo Finance, Farley added that Ford does not want to live under the shadow of Tesla Inc. (TSLA), after having played the “No. 2” role to the latter for three years.

“We've learned ... people are not willing to pay [a] $30,000 premium for that big battery on a [$50,000], $60,000 utility. But they're willing to buy a $30,000 EV if they save $2,000 a year compared to gas costs,” said Farley in the interview.

Ford’s shares were down 0.05% in Wednesday’s premarket trade. Retail sentiment on Stocktwits around the company trended in the ‘bullish’ territory.

Farley added that while Ford is trying to learn its lessons from trailing behind Tesla to better augment its portfolio for what customers are demanding, the company is now benchmarking itself against Chinese giant BYD Co. (BYDDY). “[BYD has] full support from the Chinese government ... they've been at this for 20 years. Ford has to innovate, to catch up with BYD because we're a global company. We're going to compete with them around the world,” he added in the interview.

Ford’s CEO reiterated that the company’s aim is to roll out affordable EVs, pointing to the “Universal EV Platform” announced in August. Ford had announced plans to launch a midsize four-door electric pickup with a targeted starting price of about $30,000, scheduled to reach customers by 2027.

Ford stated that its “Universal EV Platform” reduces parts by 20% compared to a typical vehicle, the assembly line is 15% faster, and the cost of ownership for buyers over five years is less than a three-year-old used Tesla Model Y.

F stock is up 21% year-to-date and over 13% in the past 12 months.

Also See: Dow Futures Fall As US Government Shuts Down: NKE, LAC, OXY, ARM Among Stocks To Watch

For updates and corrections, email newsroom[at]stocktwits[dot]com.

Share

·

Add us on