Jim Farley: Ford CEO Jim Farley has revealed startling insights from a recent teardown of rival electric vehicles, including those made by Tesla and leading Chinese automakers, prompting major changes to Ford’s electric vehicle (EV) strategy.
Speaking on the Office Hours: Business Edition podcast, Jim Farley said he was “shocked” after discovering that Ford’s own Mustang Mach-E contained nearly 1.6 kilometers (almost a mile) more wiring than a Tesla Model 3. The findings highlighted inefficiencies in Ford’s EV design compared to its competitors.
“I was very humbled when we took apart the first Model 3 and the Chinese vehicles,” Farley said. “It was shocking what we found.”
The surprising revelations have driven Farley to push for faster innovation within Ford’s EV operations. He emphasized that the company must act boldly and transparently to solve its biggest challenges. “My ethos is, take on the hardest problems as fast as you can — sometimes in public — because you’ll solve them quicker that way,” he noted.
To accelerate progress, Ford established its dedicated Model E division in 2022, focusing entirely on electric mobility. Although the unit reported a $5 billion loss in 2024, Farley described the EV race as a “brutal business” but insisted it’s essential for Ford’s future.
Despite challenges, the U.S. EV market saw record-high sales in 2025, as consumers rushed to purchase vehicles before the federal EV tax credit expired in September. Still, Farley cautioned that EVs currently represent only about 5% of the U.S. auto market, underscoring the long road ahead.
Farley also warned that Chinese EV manufacturers pose an “existential threat” to American automakers, capable of undercutting prices and dominating markets. In response, Ford has announced a $5 billion investment to modernize its Kentucky plant and streamline EV production. The company also plans to launch an affordable $30,000 electric pickup truck by 2027, aiming to make EVs more accessible to everyday buyers.
“We can’t walk away from EVs — not just for the U.S., but if we want to be a global company,” Farley asserted. “I’m not going to cede that to the Chinese.”
As Jim Farley leads Ford through one of the most competitive eras in its history, the automaker’s renewed EV strategy reflects a high-stakes effort to reclaim leadership in the global electric vehicle race — one defined by efficiency, innovation, and survival.
