Jim Farley has made no secret of his desire to win.
The Ford (f) – Get Free Report CEO has made it clear that he wants his company to become number one in the electric vehicle sector.
In April he threw down the gauntlet to Tesla (TSLA) – Get the free report, the world’s largest EV company, and “all comers to become the world’s leading EV manufacturer”.
“No one would have thought we could do that two years ago,” said Farley;
The company announced on Nov. 30 that it has built the 150,000th Mustang Mach-E since production began nearly two years ago, despite supply chain challenges and a surge in commodity prices.
The performance even impressed Tesla (TSLA) – Receive a free report from CEO Elon Musk, who tweeted to his congratulations to Farley and company.
“Many Thanks, @elonmusk”, Farley answered. “Lots of work ahead of us.”
And Ford said Dec. 1 that it plans to invest an additional $153 million at its UK plant to boost electric vehicle production.
Ford sold a total of 6,255 vehicles in November, up nearly 103% year over year and “making Ford America’s second-best-selling electric vehicle brand and maker behind Tesla.”
F-150 Lightning sales totaled 2,062 and since its first sale in late May, F-150 Lightning sales have totaled 13,258 trucks.
“Ford’s electric vehicle sales grew about twice as fast as the overall electric vehicle segment in November as Ford prepares to ramp up production next year to meet U.S. demand,” Ford said in a statement.
Ford beat Hyundai-Kia to become the No. 2 EV market, but it wasn’t all good news as the company reported a 7.8% drop in overall US sales for the month. Retail sales fell 15.8%.
ford
“Tesla’s position is changing”
Truck sales were down 1.2% year over year and SUV sales were down 15%.
And there is still a lot to do in the electric vehicle sector. Tesla reported worldwide deliveries of more than 908,000 electric vehicles in the third quarter.
But Tesla, which delivered the first of its long-promised electric semitrailer trucks on Dec. 1, can’t afford to rest on its laurels, according to the S&P Global Mobility Study.
The study says much of Tesla’s share price loss can be attributed to electric vehicles being available in a more accessible range of the manufacturer’s suggested retail price (MSRP) — below $50,000, where Tesla isn’t really competing yet.
“Tesla’s position is changing as new, more affordable options enter the market that offer the same or better technology and production setup,” the report said. “With growing consumer choice and consumer interest in electric vehicles, Tesla’s ability to maintain a dominant market share will be challenged going forward.”
The study predicts the number of battery-electric nameplates will grow from 48 currently to 159 by the end of 2025, “at a pace faster than Tesla will be able to add factories.”
According to data from S&P Global Mobility, Tesla currently has a 65% share of the electric vehicle market, Ford is second with 7% market share, Kia is second with 5%, and Chevrolet and Hyundai are fourth with 4% each. The remaining 15% share will be split between all other EV manufacturers.
Tesla is developing cheaper electric vehicles
During a recent conference call, Musk reconfirmed that the company is working on a vehicle that’s more affordable than the Model 3, “although the launch timing is unclear.”
“Tesla’s 2023 lineup is expected to expand to include Cybertruck and eventually a Roadster, but Tesla’s 2025 lineup will largely consist of the same models it offers today,” the report reads.
“But before you feel too bad about Tesla, remember that the brand will continue to see unit sales even as share falls,” said Stephanie Brinley, associate director, AutoIntelligence at S&P Global Mobility.
“The EV market in 2022 is a Tesla market and will remain so as long as its competitors are tied to production capacity,” Brinley said.