Ford CEO Shares 'Shocking' Discovery Inside Tesla That Sparked Company Overhaul
Jim Farley, CEO of Ford, revealed a pivotal moment that pushed him to transform the company’s approach to electric vehicles. Speaking on the “Office Hours: Business Edition” podcast, Farley described the experience of dissecting Tesla's Model 3 and Chinese EV competitors as “shocking.”
“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.”
Insights From the Vehicle Teardowns
Farley pointed out that Ford's Mustang Mach-E contains about 1.6 kilometers more electrical wiring than the Tesla Model 3, which adds unnecessary weight and demands a larger, more costly battery.
Industry Practice and Competitive Pressure
Teardown analysis of rival vehicles is common in the automotive world. For example, Xiaomi’s EV division also disassembled several Tesla Model Ys to scrutinize their components.
Driving Change at Ford
Since becoming CEO in 2020, Farley has taken decisive steps to respond to competitive pressures. In 2022, he established a dedicated EV division named Model E to accelerate Ford’s electric vehicle development.
“The shocking realization of how far ahead Elon Musk's automaker and China's EV upstarts were pushed me to overhaul the company.”
Author’s summary: Jim Farley’s discovery inside Tesla’s Model 3 exposed key inefficiencies in Ford’s EV design, inspiring a strategic overhaul and the creation of Ford’s dedicated electric vehicle division.
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