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Ford CEO Jim Farley: Americans need to “get back in love” with smaller cars amid EV transition
Ford CEO Jim Farley shared some insights during his interview at the Aspen Ideas Festival. Farley noted, for one, that Ford is looking to release a $30,000 all-electric vehicle that will be profitable in about 2.5 years. He also discussed the value of smaller EVs to consumers and the electric vehicle transition.
Farley did not provide a lot of details about Ford’s affordable EV, though he stated that the upcoming vehicle is being developed by the automaker’s dedicated “skunkworks” team, which operates independently from Ford’s main business. The CEO did, however, hint that Ford’s upcoming affordable EV is expected to compete with cars from Chinese automakers like BYD, as well as Tesla’s next-generation platform.
Interestingly enough, Farley also highlighted the value of smaller electric cars. As per the executive, radical changes are needed to produce a profitable EV, and one of these changes could be a focus on smaller vehicles. As noted in a CNBC report, Farley reiterated the idea that Ford’s next-generation electric vehicles would be profitable.
“You have to make a radical change as an (automaker) to get to a profitable EV. The first thing we have to do is really put all of our capital toward smaller, more affordable EVs. That’s the duty cycle that we’ve now found that really matches. These big, huge, enormous EVs, they’re never going to make money. The battery is $50,000… The batteries will never be affordable,” Farley stated, though a Ford spokesperson later noted that the CEO was referring to the automaker’s Super Duty models, not the F-150 Lightning.
Most notably, Farley also stated that American consumers need to fall back in love with smaller vehicles. This is an interesting comment from the CEO considering that the majority of Ford’s profits today come from trucks. As per Farley, however, it is pertinent for Ford to reach profitability with EVs in the next five years so the company can compete with China’s electric cars.
“We have to start to get back in love with smaller vehicles. It’s super important for our society and for EV adoption. We are just in love with these monster vehicles, and I love them too, but it’s a major issue with weight.
“If we cannot make money on EVs, we have competitors who have the largest market in the world, who already dominate globally, already setting up their supply chain around the world. And if we don’t make profitable EVs in the next five years, what is the future? We will just shrink into North America,” Farley said.
Watch Jim Farley’s interview with CNBC at the Aspen Ideas Festival in the video below.
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Tesla offers new deal on used inventory that you won’t want to pass up
Tesla opened up lease deals on used Model 3 and Model Y inventory in California and Texas on Tuesday, marking the first time it has launched the option on pre-owned cars.

Tesla is offering a new deal on its used vehicle inventory that consumers looking for a great deal won’t want to pass up.
Traditionally, Tesla has not allowed potential car buyers to lease its used inventory. The only two options were to buy with cash or finance it through Tesla or a bank.
However, with the elimination of the $7,500 new and $4,000 used EV tax credits, Tesla is breaking its own rules and is now offering lease deals on its used vehicle inventory, but only in a couple of states, as of right now.
Tesla is ready with a perfect counter to the end of US EV tax credits
Tesla opened up lease deals on used Model 3 and Model Y inventory in California and Texas on Tuesday, marking the first time it has launched the option on pre-owned cars.
The deals are tremendous and can cost as little as $0 down and under $225 per month for some vehicles.
Lease a Pre-Owned Model 3 or Y
As low as $0 down & $225/month
Now available in CA & TX https://t.co/LRYRIZP8VZ
— Tesla North America (@tesla_na) August 19, 2025
Tesla also allows customers to buy the vehicle at the end of their lease deal, which enables some really great ways to end up an owner of the car you plan to drive for the next two or three years.
The lease deal also helps Tesla rid itself of older vehicles that might not be of future use to the company. It formerly planned to use leased vehicles in its eventual Robotaxi fleet, but many of the cars in its used inventory have Hardware 3, which is less capable than Hardware 4, which is installed in the new Model 3 and Model Y.
More importantly, Tesla is giving people yet another way to be in the market for a Tesla before the tax credit ends on September 30.
Elon Musk
Tesla Model Y L might not come to the U.S., and it’s a missed opportunity
The Model Y L has a variety of big changes that would be advantageous for the U.S. market, including a longer wheelbase, more comfortable seats, a third row that appears to be more spacious than Tesla’s six-seat Model Y that it previously offered, B-Pillar vents for rear passengers, and more.

Tesla’s new Model Y L might not come to the U.S., CEO Elon Musk said this morning.
It’s a missed opportunity, and I’m not the only one who feels this way.
In the past, I have personally written a handful of articles about what Tesla owners have been wanting in the United States: a full-sized SUV, or at least a vehicle that is larger than the Model Y but less of a crossover than the Model X.
Tesla is missing one type of vehicle in its lineup and fans want it fast
The only thing that Tesla has announced that even slightly matches this sort of idea is the Robovan, which is, optimistically, several years off because it lacks a steering wheel and pedals and will require Full Self-Driving to be fully autonomous.
Even if Tesla launches FSD next year, it will take a year or two to figure out manufacturing, go through regulatory hurdles with the EPA, and eventually enter mass production for customers.
The Model Y L has a variety of big changes that would be advantageous for the U.S. market, including a longer wheelbase, more comfortable seats, a third row that appears to be more spacious than Tesla’s six-seat Model Y that it previously offered, B-Pillar vents for rear passengers, and more.
However, Musk said it won’t come to the U.S. until next year, and that it “might not ever, given the advent of self-driving in America.”
This variant of the Model Y doesn’t start production in the US until the end of next year.
Might not ever, given the advent of self-driving in America.
— Elon Musk (@elonmusk) August 20, 2025
To be blunt, I’m not sure if I truly believe that Musk thinks the Model Y L won’t come to the U.S. Some believe he said this to not Osborne Effect Model Y sales here, which seems more likely than anything.
Tesla Model Y L gets disappointingly far production date in the United States
People have been buying the Model Y for two years more than any other car in the world. To act as if many families would not appreciate the extra space seems very strange; a big complaint with the Model Y is that it simply does not fit larger families.
If you have four kids, you’re forced into the Model X, which might be too expensive for some families, as it starts at $79,990.
While Tesla’s focus is undoubtedly on autonomy, it is important to remember that some people still really enjoy the act of driving their cars. Tesla has worked very hard to create a fun and sporty driving experience, especially in the new Model Y. Many consumers, including myself, like to take advantage of that.
Autonomy might eventually take over human driving completely, but in the near term, it does not seem as if that is the case. Even if someone were interested in never driving again, this longer and more spacious Model Y L would be an ideal option for American families that need the room for at least six passengers.
Quite a few big names in the Tesla community share this sentiment:
I’m a little surprised by this.
I think the Model Y L would sell extremely well in North America, even with the advent of self-driving. Americans love their larger SUVs. Bigger families here want the Model Y L. There is a need in North America for larger all-electric SUVs at a… https://t.co/v7D1IpCnET
— Sawyer Merritt (@SawyerMerritt) August 20, 2025
More than likely, Musk does not want to announce a more attractive option than the current Model Y, as many consumers would likely wait a year or two for the L in an effort to have more space.
In all honesty, I see the Model Y L coming to the United States, as it truly fits the bill as an ideal car for the modern American family.
Elon Musk
Tesla’s Elon Musk shares optimistic teaser about FSD V14: “Feels sentient”
FSD V14 is arguably the second biggest update to Tesla AI/Autopilot after the release of V12, Musk wrote.

Tesla CEO Elon Musk has provided a rather exciting teaser about the capabilities of Full Self-Driving’s (FSD) upcoming V14 update.
As per Musk, V14 is arguably the second biggest update to Tesla AI/Autopilot after the release of V12, which started its initial rollout to Tesla employees way back November 2023.
Tesla FSD V14
Elon Musk has been teasing the capabilities of FSD V14 in recent weeks. Earlier this month, the CEO shared that FSD V14 will feature a 10X higher parameter count, and it will also nag drivers significantly less than the system’s current iteration. While FSD V14 is not Unsupervised FSD, which is being used in the Austin Robotaxi pilot, it is expected to be a significant improvement nonetheless.
“The FSD release in about 6 weeks will be a dramatic gain with a 10X higher parameter count and many other improvements. It’s going through training & testing now. Once we confirm real-world safety of FSD 14, which we think will be amazing, the car will nag you much less,” Musk wrote in his post.
“Feels sentient”
Musk recently shared some more details about FSD V14 on X. In response to a video of a William Blair analyst who mentioned that Tesla’s Robotaxi service felt a lot more like a person was driving it compared to Waymo’s robotic maneuvers, Musk noted that “Version 14 of Tesla self-driving fells sentient.”
Musk also clarified that the system that the William Blair analyst experienced was Version 13, so the system’s performance will definitely get even better. “He was just on version 13. Version 14 is the second biggest update to Tesla AI/Autopilot ever after V12. It feels alive,” Musk wrote in his post.
Musk’s comments bode well for the rollout of FSD V14. So far, FSD has reached a point where drivers and passengers have commented that the system already operates a vehicle in a very cautious and humanlike manner. Having a system that feels “sentient,” as the CEO noted, would most definitely be game-changing.
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