Ford CEO Reveals 'Shocking' Discovery from Teardown of Tesla and Chinese EVs
Ford CEO Jim Farley shared insights after dissecting competitor electric vehicles, leading to a significant business decision aimed at enhancing Ford's position against Tesla and Chinese EV manufacturers.
Revealing Comparisons in Vehicle Wiring
During the industry-standard practice of deconstructing rival vehicles, Ford found its Mustang Mach-E contained about 1.6 kilometers (nearly a mile) more wiring than the Tesla Model 3.
Similar surprises emerged when examining electric cars from Chinese competitors.
“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 said on an upcoming episode of the Office Hours: Business Edition podcast.
Strategic Response to the Findings
These insights drove Ford to take decisive steps to maintain its competitiveness. The company, with a long heritage dating back to the original Model T in 1908, has encountered challenges keeping pace with fast-moving innovations in the electric vehicle sector, particularly led by Chinese automakers.
In 2022, Farley established a new division called Model E focused on advancing Ford's electric vehicle innovation.
“I'm not going to just cede that to the Chinese,” Farley declared, emphasizing Ford's commitment to competing in the EV space.
About the Reporter
Marco Quiroz-Gutierrez is a reporter for Fortune covering general business news.
Author’s summary: Ford's CEO Jim Farley uncovered surprising details in competitor EVs that prompted strategic changes, including launching the Model E division to boost innovation and compete globally.