Ford CEO’s “Humbling” Tesla Discovery Sparks Major Shakeup
Ford CEO Jim Farley revealed that taking apart Tesla and Chinese electric vehicles left him “humbled” and “shocked,” leading to a major operational shakeup at the American automaker.
Key Takeaways
- Tesla Model 3 uses 1.6 km less wiring than Ford Mustang Mach-E
- Similar efficiency found in Chinese EV manufacturers
- Discovery prompted Ford’s $5 billion EV investment and manufacturing overhaul
The Shocking Discovery
During competitive vehicle teardowns—a standard industry practice—Ford engineers found Tesla’s Model 3 contained approximately 1.6 kilometers less wiring than Ford’s comparable Mustang Mach-E. Similar efficiency advantages were discovered in Chinese electric vehicles.
“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 stated on the Office Hours: Business Edition podcast.
The findings prompted immediate changes at Ford, which has faced challenges in the competitive auto market.
Ford’s EV Transformation
In response, Ford created its Model E division in 2022 to drive electric vehicle innovation. The division has reportedly cost the company $5 billion in 2024 alone, but Farley views this as a necessary challenge.
“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,” he explained.
Doubling Down on Electric Future
Farley emphasized that Ford cannot retreat from the EV segment. “We can’t walk away from EVs, not just for the US, but if we want to be a global company, I’m not going to just cede that to the Chinese,” he declared.
The commitment is backed by substantial investment. In August 2025, Ford allocated $5 billion to EV production, including manufacturing process changes and revamping its Kentucky plant.
The Kentucky facility, currently producing F-Series Super Duty trucks, will manufacture Ford’s $30,000 electric pickup truck scheduled for release in 2027.
