Ford believes its low-cost EV platform will go head-to-head with China
Can Ford really compete with China’s electric vehicles? The American automaker believes it may hold the key to competing with Chinese EV makers. Ford shared a few more details about its upcoming low-cost EV platform and how it plans to keep pace with China.
Ford says its new low-cost EV platform will match China
Remember the “skunkworks” team that Ford’s CEO Jim Farley revealed was working on a new EV platform last year?
Well, it’s not so small, and the secret is out. Led by former Tesla engineer Alan Clarke, the team has grown to around 500 members, many of whom were previously employed at Tesla, Rivian, Lucid, and Apple.
Farley said on the company’s earnings call early last year that the “ultimate competition is going to be affordable Tesla and the Chinese OEMs.” In October 2024, Ford’s CEO said the team is benchmarking costs “against the best competitors in the world,” including those in China.
According to Farley, the first vehicle based on the new platform —a midsize electric pickup —will “match the cost structure of Chinese OEMs building in Mexico.”
During a “candid dinner discussion” last week, Daniel Roeska, Bernstein’s lead automotive analyst, spoke with Lisa Drake, Ford’s vice president of tech platform programs and EV systems, about the new platform.
Roeska wrote in a note to investors (via Axios) that “Lisa Drake was explicit: Ford intends to match the cost structure of leading Chinese players.” The note added, “That means not just battery pricing, but full system cost from chassis and thermal systems to inverters and electronics.”
To cut costs, Ford will use prismatic LFP batteries licensed from China’s leading EV battery maker, CATL. They will be manufactured at a new plant in Michigan.
Drake explained that Ford’s new low-cost EV platform will support eight body styles, including trucks, crossover SUVs, and maybe even sedans. The midsize EV pickup, Ford’s first low-cost model, is expected to look like an electric Ranger.
Roeska explained, “With eight body styles and potential global applicability, it’s intended to underpin Ford’s EV strategy for much of the next decade.”
Ford still has a few hurdles. The new LFP battery plant in Michigan costs about $3 billion, and Ford expects to receive roughly $700 million in federal tax credits to help offset some of the costs. With Republicans aiming to eliminate government subsidies and other incentives for EVs, batteries, and other clean energy projects, it could face an uphill battle.
Electrek’s Take
Can Ford rival China with its new low-cost EV platform? It doesn’t help that the Trump administration is working against it.
After flying Xiaomi’s SU7 from Shanghai to Chicago last year, Farley called the Chinese EV “fantastic” on the Fully Charged Podcast and even said he “doesn’t want to give it up.” Xiaomi has already delivered over 200,000 SU7 models, which was launched just last March.
Farley explained that “You’ve got to get behind the wheel to truly understand and beat the competition.” Ford will have some ground to make up with Chinese EV makers, like BYD, which are quickly expanding into new overseas markets.
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Environment
Tesla releases details about ‘Robotaxi’ launch: there’s a ‘safety monitor’ in front seat
Tesla has released the details about its planned ‘Robotaxi’ launch in Austin, Texas, this weekend, and it’s even worse than we thought. There’s going to be a “safety monitor” in the front seat.
Over the last few weeks, we have been discussing how Tesla’s planned launch of a “Robotaxi” service was a game of smoke and mirrors, meant to improve the optics of the automaker’s self-driving efforts as Waymo emerges as a clear leader.
The planned service is a geo-fenced and teleoperation-supported ride-hailing service operated by a small internal fleet, which is completely different from Tesla’s long-promised unsupervised self-driving in consumer vehicles through its “Full Self-Driving program.”
Furthermore, we have been reported on Tesla’s limited testing in Austin, which CEO Elon Musk claimed involved “no driver”, but test vehicles have all been spotted with Tesla employees in the front passenger seats with access to buttons to stop the car or have it pull over.
In comparison, Waymo tested its vehicles for 6 months with a safety driver in the car and 6 months without a safety driver in the car in Austin before launching its commercial service earlier this year.
Now, Tesla has sent invitations to some known pro-Tesla influencers, primarily on Musk’s X social media platform, to experience the launch of the Robotaxi service this weekend.
The invitations confirm extreme limitations in the service, with the most significant one being the presence of a “safety monitor” in the passenger seat.
Here are the other requirements listed:
- You must agree to Terms of Service, Rider Rules, Privacy Notice, and Service Animal Policy.
- You must have a credit/debit card on file.
- You can request a ride via the app from 6:00 AM to 12:00 AM, within the geofenced area (excluding airports).
- Operational hours and geofence details are available in the app and may change.
- Service may be limited or unavailable in inclement weather.
- Only the invited user may download and use the Robotaxi app.
- Participants must be courteous and respectful; unsafe or disrespectful behavior may lead to termination.
- Riders should provide a star rating and feedback in the app.
- Photos and videos of the experience are permitted.
- Smoking, vaping, consuming alcohol, and using drugs are not permitted inside the Robotaxi.
- Robotaxi may not be used in connection with any crime or to transport weapons or illegal/hazardous materials (e.g., flammable or combustible liquids).
- Surveillance, reverse engineering, or recording of proprietary Robotaxi components or features is strictly prohibited.
- Tesla may suspend or terminate access if:
- You violate any of these rules.
- You post or share content on social media that depicts misuse or violations inside the Robotaxi.
In short, Tesla’s “Robotaxi” service is going to launch with the supervision of Tesla employees in the front seat at all times. It’s limited to 6 am to 12 am and it doesn’t work in “inclement weather.
Electrek’s Take
Again, like I repeatedly said, this is all about optics. Tesla is just trying to get a win and say that it “launched its robotaxi on time in June” when this is basically Tesla’s public FSD with the supervising driver being moved to the passenger seat.
At least it’s going to be safer than if Tesla went without it, but it clearly shows that Tesla is falling far behind Waymo and the competition when it comes to self-driving.
The main thing that people like about Waymo and there are even willing to pay more than Uber is the fact that there’s no one else in the car.
This simply won’t scale. Tesla has yet to solve self-driving. It needs to focus on that instead of appearences.
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In the Electrek Podcast, we discuss the most popular news in the world of sustainable transport and energy. In this week’s episode, we discuss the Tesla Robotaxi launch this weekend, the new Nissan Leaf, Ford’s upcoming low-cost EVs, and more.
The show is live every Friday at 4 p.m. ET on Electrek’s YouTube channel.
Today, the episode is live at 8 a.m instead due to Fred’s travels in China.
As a reminder, we’ll have an accompanying post, like this one, on the site with an embedded link to the live stream. Head to the YouTube channel to get your questions and comments in.
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Here’s the live stream for today’s episode starting at 8:00 a.m. ET (or the video after 9 a.m. ET):
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