Ford CEO says taking apart Tesla, Chinese EVs was ‘stunning’

Ford CEO says taking apart Tesla, Chinese EVs was ‘stunning’

Ford CEO Jim Farley said he bought so humbled by the competitors that he realized he wanted to overtake his company or danger falling behind.

The auto govt admitted on Tuesday that he was “very humbled” when Ford tore apart its first Model 3 and began dismantling Chinese electrical autos, discovering what he called “shocking” variations that compelled the company to fully rethink the way it builds automobiles.

The wake-up name got here when Ford engineers in contrast the Mustang Mach-E — the quantity two bestselling EV in the nation at the time — to Tesla’s Model 3. What they discovered was brutal, according to the chief govt.

Ford CEO Jim Farley said he bought so humbled by the competitors that he realized he wanted to overtake his company or danger falling behind. Getty Images

“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,” Farley told the “Office Hours: Business Edition” podcast on Tuesday.

The Mach-E’s wiring loom — the bundle {of electrical} wires, connectors and protecting coverings that carry energy and alerts throughout a car — was 1.6 kilometers longer than Tesla’s, Farley told the “Office Hours: Business Edition” podcast on Tuesday.

That additional copper added 70 kilos of useless weight to the Mustang. Since every pound in an EV prices cash in battery capability, that bloated wiring harness was costing Ford an additional $200 per battery just to haul it round, according to Farley.

That’s when he realized that Ford had “even more catchup to do” and that corporations utilizing conventional gear had been “really far behind.”

“All the math changes with an EV with that huge expensive battery.”

The eye-opening revelations that resulted from dismantling competitor fashions had been a major driver behind Ford’s choice in 2022 to separate the company into Model E — the EV imaginative and prescient — and the Blue and Pro companies.

Farley believed Ford wanted a new division and a new governance construction because the EV enterprise is essentially different.

The transfer has been expensive. The Model E division misplaced more than $5 billion in 2024 and is projected to face an identical hit this 12 months, however Farley said he doesn’t remorse it.

“I knew it was going to be brutal business-wise,” he said on the podcast, including that he thought it was important for Ford’s EV operations to be accountable to buyers.

“My ethos is, take on the hardest problems as fast as you can and do it sometimes in public because you’ll solve them quicker that way,” Farley said.

Despite the humbling teardown, Ford stays a major participant in the EV race, ranking third in US EV sales by way of the third quarter of 2025, behind only Tesla and Chevrolet. But the hole is widening, and the competitors is fierce.

Farley said Ford engineers took apart a Tesla Model 3. What they discovered confirmed that the Detroit automaker was falling behind in the EV race, according to Farley. CFOTO/Future Publishing by way of Getty Images

Farley has warned that American EV makers are lagging behind their Chinese rivals.

Chinese EV makers now account for more than half of all electrical autos bought globally, and their market share is exploding in Europe, Asia and South America.

In China, the world’s largest automotive market, the tables have already turned. Last month, Xiaomi delivered practically 49,000 EVs, crushing Tesla’s 26,000.

It’s not just Xiaomi; other Chinese manufacturers like BYD and XPeng are also quickly gaining floor, fueled by decrease costs, superior options and over $230 billion in authorities subsidies since 2009.

Chinese-made EVs aren’t obtainable to American customers resulting from punishing 100% tariffs on those imports.

Farley has warned that American EV makers are lagging behind Chinese rivals such as Xpeng. AFP by way of Getty Images

Last 12 months, the Ford boss said that he had a Chinese-made Xiaomi SU7 EV specifically flown to the US for his on a regular basis use — a remark that raised eyebrows given his standing as the head of one in all Detroit’s legacy automakers.

“I don’t want to give it up,” Farley said at the time.

Jason Isaac, who heads the American Energy Institute, told National Review that Farley’s use of a Chinese EV a “slap in the face to the thousands of hardworking employees at Ford Motor Company.”

Farley defended his actions on X, saying, “I try to drive everything we compete against. Have done it my whole career. Specs can tell part of a story, but you’ve got to get behind the wheel to truly understand and beat the competition.”

The Xiaomi SU7, which retails for $30,000 in China, is unavailable in the US resulting from a 100% tariff on Chinese-made EVs and incompatibility with US security and charging requirements.

But Farley gushed about the company, calling it an “industry juggernaut” and “the Apple of China.”

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