Ford Motor Company F CEO jim farley expressed confidence on Monday to match with Tesla Inc TSLA On EV return.
What happened: Farley said Tesla had a big head start in the EV business, as did Ford on Pro. However, “now they’re seeing a lot of pressure,” Farley said in a Interview Together bloomberg television on Monday.
In response to a question about whether Ford is facing increasing returns from its EV business or Tesla is facing margin pressure in catching up with Tesla, Farley said, “Both are going to happen.”
“They have reduced their prices on their main product Model Y. Five to seven thousand dollars. It goes up, it goes down but it’s too low,” Farley said. CEO also drew a parallel line in the middle Warren Buffettsupported BYD And the two companies as Tesla face mounting pressure from rising competitors in the EV market.
why it matters: Ford is eyeing 8% returns from its EV business by 2026. By the end of the same year, it also aims to produce 2 million EVs.
For the full year 2023, although Ford expects overall adjusted EBIT of about $9 billion to $11 billion, it is also eyeing a loss of about $3 billion for its EV unit. Ford Model E,
Analysts are currently skeptical about the projected growth.
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