Friday, July 19, 2024
NewsFord CEO Says Tesla Price Cuts Could Start Price War

Ford CEO Says Tesla Price Cuts Could Start Price War

Ford concerned with impact of Tesla price cuts

  • Farley not surprised about price cuts

  • Said Ford itself has tried move before, but it didn’t work


Ford CEO Jim Farley is worried that Tesla’s ongoing price cuts could start a price war among electric vehicles. But also that the cuts should “surprise no one.”

The Ford exec was speaking at a charity event in Detroit (via Bloomberg) earlier this week when he was talking about the sixth price cut from Tesla this year. The company’s EVs are now priced lower than they have been in a couple of years, though still not to the $35k price point Elon once promised.

“Price wars are breaking out everywhere,” Farley said. Who’s going to blink for growth?” Farley compared the price cuts to those Ford used itself back in the days of the Model T. The company cut that car’s price in half to maintain market share.

It didn’t work. Farley noted that Ford was still passed by competitor Chevrolet, possibly giving an insight into his thoughts as to going after Tesla on price.

Tesla’s price cuts seem to be hurting the company’s own bottom line. First quarter net income dropped 24 percent year over year. Though despite the cuts, inventory at Tesla stores appears to be growing rapidly.

While Ford has cut the price of its Mustang Mach-E, a model that has a competitor in the Tesla Model Y, the brand has done the opposite in spaces where there is no rival. The Ford Lightning Pickup, for example, has seen its price climb 50 percent since early 2022.

 

Advertisement

Trending Now

LEAVE A REPLY

Please enter your comment!
Please enter your name here

This site uses Akismet to reduce spam. Learn how your comment data is processed.