Ford CEO labels Tesla’s line-up outdated compared to Chinese EV rivals

Ford CEO Jim Farley has sparked a debate within the automotive industry after revealing he spent six months driving a Xiaomi SU7, a Chinese electric vehicle, rather than a Tesla.

Speaking on the Rapid Response podcast with host Bob Safian, Farley explained that his decision was driven by a need to benchmark against the most current technology.

While acknowledging Tesla’s success, he remarked that they "really don't have an updated vehicle" to serve as a contemporary standard, noting that the future of EV competition is now being defined by Chinese innovation.

Farley specifically identified the Chinese automaker BYD as the global leader in the sector, praising their sophisticated supply chain and aggressive cost structures.

His primary concern is a critical price gap; while Ford’s most affordable hybrid, the Maverick XL, starts at approximately $28,000, Tesla’s Model 3 begins at nearly $37,000.

Farley believes that if American manufacturers cannot produce diverse body styles—including pickups and SUVs—at a $30,000 price point, they will be unable to withstand the "devastating" pressure of Chinese imports.

This strategic shift is already having significant financial implications for Ford. The company recently announced that pivoting away from the fully electric F-150 Lightning toward smaller, more affordable hybrid models would cost roughly $19.5 billion.

Despite this "painful reset," Farley maintains that absorbing the cost competitiveness of brands like BYD is essential for the survival of American manufacturing.

By focusing on vehicle segments where Ford has long-standing customer loyalty, Farley hopes to bridge the $9,000 affordability gap before international competitors dominate the domestic market.