Ford, the veteran automaker, has always had its sights set on taking on Tesla and claiming the top spot in the electric vehicle market. However, the recent turn of events indicates that the hunter has now become the hunted.
While Ford has relied on its experience and legacy to catch up to Tesla, the latter has shifted gears by reducing the prices of its vehicles six times this year alone. Tesla’s Model Y SUV, the direct rival to Ford’s Mustang Mach-E, has witnessed a significant price drop, putting Ford in a tight spot. The price cuts, coupled with Tesla’s superior charging network, give the Model Y an advantage over the Mach-E.
Ford’s Chief Executive, Jim Farley, has been quick to adapt to the changing times by reorganizing the company and making it more agile. However, with the competition heating up, the pressure is on Ford to make the right moves to avoid a drop in sales volumes.
Ford can take comfort in the fact that its F-150 Lightning pickup truck has no direct competitor at Tesla yet. However, Tesla’s upcoming Cybertruck is expected to be a strong contender in the pickup truck market.
As Tesla’s price-cutting strategy gains traction, it remains to be seen how the legacy automakers will respond. Will they reconsider their EV investment and R&D plans, or will they double down on their efforts to catch up to Tesla? Only time will tell.
