Ford is set to challenge next Tesla model with $25,000 EV

[midian182]

Why it matters: Electric vehicles aren't having the best time in the US right now. Sales have slowed down as more people opt for hybrid or all-combustion vehicles. The high price of EVs remains an issue for many, but Ford is reportedly working on a cheap electric vehicle to rival Tesla's sub-$25,000 Model 2.

With the threat of cheap Chinese EV imports looming large, Ford is pivoting away from large EVs to low-cost models, writes Bloomberg. The move has seen it delay plans for an electric three-row SUV and focus on developing small EVs through a specialized team in Irvine, California. The skunkworks team is led by Alan Clark, who moved to Ford two years ago after leading the engineering of the Tesla Model Y.

The report adds that Clark's team consists of fewer than 100 people working on a new electric platform that will be the basis for several EVs, including a compact SUV, a small pickup and a ride-hailing-specific vehicle. The first of these models will arrive in late 2026 with a starting price of around $25,000.

Interestingly, Ford's new compact EV will be powered by a lithium iron phosphate battery, which is about 30% cheaper than traditional lithium-ion batteries.

"All of our EV teams are ruthlessly focused on cost and efficiency in our EV products because the ultimate competition is going to be the affordable Tesla and the Chinese OEMs," said Ford CEO Jim Farley.

That $25,000 figure is significant as it is said to be around the same starting price as Tesla's next mass-market electric vehicle, a compact crossover codenamed Redwood, which will begin production at the Texas Gigafactory in the second half of 2025. In January, Tesla boss Elon Musk warned workers that they would be sleeping on the factory floor so any issues stemming from the production ramp-up for this EV could be addressed quickly.

It was only a few weeks ago that President Biden ordered an investigation into whether Chinese connected vehicles, particularly EVs, pose a security risk to American citizens. It arrived amid concerns that cheap EVs from China could flood the US market, which would have a major impact on domestic car makers.

Yesterday, President Biden announced a new rule on tailpipe emissions that calls for a 56% reduction in fleetwide average carbon emissions by 2032, the strictest-ever limit on pollution from cars and light trucks. The move is expected to ensure a massive uptick in the sale of EVs over the next eight years. While EVs made up just 7.6% of new car sales last year, the Environmental Protection Agency (EPA) says the new standards will see electric vehicles make up 35% to 56% of sales by 2032.

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https://www.techspot.com/news/102349-ford-challenge-new-tesla-model-25000-electric-vehicle.html

 

[Theinsanegamer]

"Yesterday, President Biden announced a new rule on tailpipe emissions that calls for a 56% reduction in fleetwide average carbon emissions by 2032, the strictest-ever limit on pollution from cars and light trucks. The move is expected to ensure a massive uptick in the sale of EVs over the next eight years. While EVs made up just 7.6% of new car sales last year, the Environmental Protection Agency (EPA) says the new standards will see electric vehicles make up 35% to 56% of sales by 2032."

God politicians are dumb. Correlation is not causation. All you will do is drive up demand for already existing ICE vehicles. If you want to encourage EV adoption, then BUILD OUT THE DAMN INFRASTRUCTURE.

 

[ScottSoapbox]

If we can’t build a better product, we’ll just make the competition illegal.

 

[jwdR311]

"Yesterday, President Biden announced a new rule on tailpipe emissions that calls for a 56% reduction in fleetwide average carbon emissions by 2032, the strictest-ever limit on pollution from cars and light trucks. The move is expected to ensure a massive uptick in the sale of EVs over the next eight years. While EVs made up just 7.6% of new car sales last year, the Environmental Protection Agency (EPA) says the new standards will see electric vehicles make up 35% to 56% of sales by 2032."

God politicians are dumb. Correlation is not causation. All you will do is drive up demand for already existing ICE vehicles. If you want to encourage EV adoption, then BUILD OUT THE DAMN INFRASTRUCTURE.

Sigh...the used car prices are never going to come down.

 

[Superconductor]

Hot air BS

 

[yRaz]

I recently saw a car journalist talk about how his most hated thing about EVs isn't the electric side of things, it's all the touch screen menus and safety features like the car beeps at you like crazy if you're driving 1mph over the speed limit and it's a pain to turn it off. He said all the mandated safety features make new cars absolutely miserable to drive and it just so happens that most new cars are EVs.

 

[daffy duck]

If we can’t build a better product, we’ll just make the competition illegal.

Europe is going to try that with Chinese EV's as they can't compete with their overpriced homegrown trash. Why pay $40K for Chinese made EV when Audi/Mercedes/BMW can sell you one for $150K that will be recalled 3-4 times a month.

 

[BabaYaga]

"New emissions rule accelerates green shift" Do you even read what you copy and paste or you just don't understand the automotive industry? The new rules slow down the shift.

https://www.marketwatch.com/articles/biden-vehicle-emissions-rules-auto-makers-be629c4b

The Biden administration announced strict new standards for vehicle emissions while giving auto makers more time to comply as the industry moves toward electric vehicles.

"A slower shift, with fewer electric vehicles..."

 

[BabaYaga]

"Yesterday, President Biden announced a new rule on tailpipe emissions that calls for a 56% reduction in fleetwide average carbon emissions by 2032, the strictest-ever limit on pollution from cars and light trucks. The move is expected to ensure a massive uptick in the sale of EVs over the next eight years. While EVs made up just 7.6% of new car sales last year, the Environmental Protection Agency (EPA) says the new standards will see electric vehicles make up 35% to 56% of sales by 2032."

God politicians are dumb. Correlation is not causation. All you will do is drive up demand for already existing ICE vehicles. If you want to encourage EV adoption, then BUILD OUT THE DAMN INFRASTRUCTURE.

Private companies have to build it. Last I checked there is no government gas station.

 

[BabaYaga]

I recently saw a car journalist talk about how his most hated thing about EVs isn't the electric side of things, it's all the touch screen menus and safety features like the car beeps at you like crazy if you're driving 1mph over the speed limit and it's a pain to turn it off. He said all the mandated safety features make new cars absolutely miserable to drive and it just so happens that most new cars are EVs.

I worked with car journalists. Most don't know much about cars. If you can't operate it, should not be reviewing it. Not the car's fault.

I hate those pesky safety features too. Damn thing beeps when I'm not wearing my seatbelt. Or I can't put it in gear while hooked up to a charger. My gas car just lets me drive away while still pumping gas. Don't take away my freedom!

 

[BabaYaga]

Europe is going to try that with Chinese EV's as they can't compete with their overpriced homegrown trash. Why pay $40K for Chinese made EV when Audi/Mercedes/BMW can sell you one for $150K that will be recalled 3-4 times a month.

I had so many recalls on my Tesla, I lost count. So many mornings I wake up to a message that an update fixed the recall. I'm so tired of these messages.

 

[yRaz]

I worked with car journalists. Most don't know much about cars. If you can't operate it, should not be reviewing it. Not the car's fault.

I hate those pesky safety features too. Damn thing beeps when I'm not wearing my seatbelt. Or I can't put it in gear while hooked up to a charger. My gas car just lets me drive away while still pumping gas. Don't take away my freedom!

This was the former GM of Lamborghini Atlanta l, went on to start an exotic car rental business and the manager/producer of vinwiki. He knows cars.

 

[Theinsanegamer]

Private companies have to build it. Last I checked there is no government gas station.

You should probably check again. The government DOES provide subsidies for rural natural gas and LPL stations, and in the past DID subsidize the building of rural fuel infrastructure.

The majority of gas stations, of course, did not need government assistance, because the demand was there. Last time I checked, the demand is NOT there for EVs, because EVs do not fit all use cases and nobody is going to buy a $60k+ vehicle that cant do everything a user needs.

If the government wants to force EV adoption, they need to solve the chicken and egg problem. That means building out charging stations in public parking lots, on state and federal highways, and living accommodations so no matter where someone may live or go, there is somewhere to charge. THEN you will see EV adoption skyrocket.

 

[Uncle Al]

Until they come up with EV's that are comparable to gas engine models AND meet or exceed the ranges of gas vehicles, popularity will be limited. In parts alone EV's' are considerably cheaper to make than combustion vehicles but their prices are kept artificially high in order to maximize profits. Just look at the profit margins and end of year profits .... follow the money, it's all there to see ......

 

[Underdog]

I had so many recalls on my Tesla, I lost count. So many mornings I wake up to a message that an update fixed the recall. I'm so tired of these messages.

I'm seeing a similarity to Microsoft here. Pushing a product that is so shoddy that it needs constant fixing.

 

[wiyosaya]

This was the former GM of Lamborghini Atlanta l, went on to start an exotic car rental business and the manager/producer of vinwiki. He knows cars.

To me, it sounds like all he knows is luxury vehicles priced far outside the range of the average consumer, in other words, he's a "Gear Head" to me.

I recently bought a 2024 Prius Prime - its been named 10th on Car & Driver's best cars of 2024 and is also in the top 10 of Consumer Reports' 2024 list.

For the things I use every day, it has buttons, even though it does have a touch-screen, too. Automakers are wising up and are moving back to buttons. In fact, there was an article about this on TS recently.

One of the things that I think works very well is that it has voice control of many functions. I can tell it to make a phone call or send a text message simply by telling it to so. It will even read text messages received while I'm driving. I've probably only used a small fraction of what it is capable of, however, and the voice recognition is so good it does not need any training.

 

[wiyosaya]

Until they come up with EV's that are comparable to gas engine models AND meet or exceed the ranges of gas vehicles, popularity will be limited. In parts alone EV's' are considerably cheaper to make than combustion vehicles but their prices are kept artificially high in order to maximize profits. Just look at the profit margins and end of year profits .... follow the money, it's all there to see ......

Artificially high prices are proving difficult for Tesla in China right now. https://www.bloomberg.com/news/arti...ina-amid-slower-ev-sales-growth?sref=Y0jVLcFo
Cars like the one in this article will increase competition and prices will come down.

Part of the problem, too, as I see it anyway, is that manufacturers like Porsche and other high-end supercar manufacturers make EVs that are priced far too high for the average consumer. IMO, such cars are high-end status symbols.

As I see it, we'll eventually see EVs with far greater range. There's a large amount of battery research going on and, eventually, it will pay off. The thing that will really make EVs take off once batteries sufficient to reduce range anxiety hit the market is charging infrastructure.

Right now, there are charging stations that people with EVs or PHEVs (like me) can use to charge their vehicles free of cost.

 

[wiyosaya]

If the government wants to force EV adoption, they need to solve the chicken and egg problem. That means building out charging stations in public parking lots, on state and federal highways, and living accommodations so no matter where someone may live or go, there is somewhere to charge. THEN you will see EV adoption skyrocket.

Consider this -
Biden got an initiative to do just that passed. However, it appears that there are problems with it of various sorts.https://www.politico.com/news/2023/12/05/congress-ev-chargers-billions-00129996 some of the problems are political, obviously.

If a republican gets into the WH in 2025, you can bet, beyond a shadow of a doubt, that program will be cancelled. The "leading republican candidate" has as much said he hates EVs and will do everything in his power to tank them.

 

[netman]

"the Environmental Protection Agency (EPA) says the new standards will see electric vehicles make up 35% to 56% of sales by 2032."

Wishful thinking...!