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Ford will reportedly cut 8,000 jobs from ICE production to focus on EVs

The manufacturing technology in the Rouge Electric Vehicle Center is just as innovative as the F-150 Lightning. It is the first Ford plant without traditional in-floor conveyor lines and instead uses robotic Autonomous Guided Vehicles to move F-150 Lightning trucks from workstation to station in the plant.

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Ford will reportedly eliminate as many as 8,000 jobs in the next few weeks, and the cuts are expected to come to positions in combustion engine manufacturing. Ford has made a primary push toward electrifying its lineup with a full commitment to EVs. Eliminating ICE jobs would surely help boost profits as it would funnel available capital toward electric projects.

Bloomberg, citing “people familiar with the matter,” stated that Ford would eliminate jobs from its “Ford Blue” division within the coming weeks. Ford split its ICE and EV projects into separate internal divisions earlier this year, with ICE projects falling under the Ford Blue moniker. EV projects are aligned with the “Model e” unit within the Detroit-based legacy automaker.

The division of the two powertrains within Ford’s production lines is intended to help generate a new consumer experience for EV drivers. Model e is tasked with creating a “new shopping, buying and ownership experience” for future customers using simple, intuitive e-commerce platforms. This includes the potential removal of the dealership model, which could bring in non-negotiable, set prices for electric vehicles. Tesla adopted this strategy, which does not use the traditional dealership platform. Customers generally dislike going to automotive dealerships and attempting to bargain with a salesperson. This model has helped alleviate dealership anxiety.

Teslarati spoke to Ford press representatives regarding Bloomberg’s report, and they were unwilling to comment “in any fashion.” However, given recent circumstances with other car companies, it would not be outlandish to suggest Ford may be making cuts.

Tesla and Rivian are just two automakers in the entire automotive sector who have announced they will reduce employee headcount, but both companies state they grew too quickly in some areas. Throughout the tech sector, Apple has also stated they will freeze hiring, joining Microsoft and Google as companies who will temporarily pause onboarding in some areas.

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Ford CEO Jim Farley has said in the past that eliminating some positions would be a good way to boost profits. Farley has widely led the company’s efforts into electrification, spearheading the development and expansion of several new all-electric models that will release in various regions over the next decade. The elimination of employees from an ICE unit that only has a few years left may be beginning as Ford prepares to transition to between 40 and 50 percent of its new sales being of electric models by 2030.

I’d love to hear from you! If you have any comments, concerns, or questions, please email me at joey@teslarati.com. You can also reach me on Twitter @KlenderJoey, or if you have news tips, you can email us at tips@teslarati.com.

Joey has been a journalist covering electric mobility at TESLARATI since August 2019. In his spare time, Joey is playing golf, watching MMA, or cheering on any of his favorite sports teams, including the Baltimore Ravens and Orioles, Miami Heat, Washington Capitals, and Penn State Nittany Lions. You can get in touch with joey at joey@teslarati.com. He is also on X @KlenderJoey. If you're looking for great Tesla accessories, check out shop.teslarati.com

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Tesla axed one of the Model Y’s best features in ‘Standard’ trims: here’s why

Lars Moravy explains why Tesla chose to go with a glass roof in the new Standard trims, despite it not being visible.

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Credit: Tesla

Tesla chose to implement a glass roof on the new Model 3 and Model Y ‘Standard’ builds, despite the fact that you won’t be able to see it from the inside.

In the new Model 3 and Model Y ‘Standard’ configurations, one of the biggest changes is the lack of a glass roof, which is one of the more unique features Tesla offers.

How Tesla’s Standard models will help deliveries despite price disappointment

The entire roof of the Model 3 and Model Y’s ‘Premium’ and Performance trims is glass, giving everyone in the car an astounding view of the sky.

However, Tesla chose to cover this up in the new ‘Standard’ trim levels. Here’s a look at it:

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Credit: ItsKimJava | X

Despite it not being visible from the inside, the roof is still made of glass. It is only visible from the outside. Even if you removed the headliner in the Model 3 or Model Y ‘Standard,’ you would not be able to see the outside, because the glass is opaque:

Tesla’s Vice President of Powertrain, Lars Moravy, commented on the use of glass in the Premium models and how it differs from the glass in the Standard trims:

“All glass is NOT created equal. Remember, the Model Y Premium glass is laminated with silver IR reflective coatings to make it super comfy and reject solar load… the standard is not… plus LOTS of people wanted a closed headliner, always trying to listen (and improve road noise at the same time).”

The decision to cover up the glass while still using it was an efficiency choice. Moravy said Tesla chose to keep the glass for the new Standard models due to “cost, supply chain, and manufacturing efficiency.”

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Tesla launched the Standard models on Tuesday. The cars were effectively a counter to the loss of the $7,500 EV tax credit.

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How Tesla’s Standard models will help deliveries despite price disappointment

“What a giant miss,” one person said.

“With all due respect, no way is this what y’all have been hyping for 6 quarters…” another one claimed.

“So…where are the affordable models?” another reply read.

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Credit: Tesla

When Tesla unveiled its Standard versions of the Model 3 and Model Y this week, reactions were mixed. Many liked the addition of two new models, but they were also concerned about the price.

“What a giant miss,” one person said.

“With all due respect, no way is this what y’all have been hyping for 6 quarters…” another one claimed.

“So…where are the affordable models?” another reply read.

Tesla launches two new affordable models with ‘Standard’ Model 3, Y offerings

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There’s no arguing it: $36,990 and $39,990 for the Model 3 Standard and Model Y Standard were not what consumers had in mind.

But, despite Tesla getting its new offerings to a price that is not necessarily as low as many expected, the two cars still have a chance to assist with quarterly deliveries.

Here’s how:

First-time Tesla buyers will lean toward Standard models

Tesla owners have become accustomed to expecting all the bells and whistles in their cars. Heated seats, ventilated seats, acoustic glass, vegan leather, industry-leading performance, world-class range, and a glass roof are all expected by current or past owners.

But what about new owners?

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New owners do not have these high expectations, so to many of those who have not sat in a Tesla or driven one before, they are going to be blown away by the minimalistic looks, capabilities, and features of the Standard models.

The Premium models will feel like the high-end offerings that other automakers also have for sale, except they’ll only be a few thousand dollars more than Tesla’s base models. With other companies, the price for these higher-end trims is $10,000 or more.

The more affordable Standard models will be there, but if buyers want the extra features, they’ll likely be able to justify the extra few thousand dollars.

Tesla’s Standard Models fall under the U.S. Average Transaction Price

Kelley Blue Book releases a new report each month showing the average transaction price (ATP) of all vehicles sold in the U.S. for that month.

The latest report, released on September 10 for the month of August, revealed an ATP of $49,077. This was up 0.5% from July ($48,841) and higher year over year by 2.6%.

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Technically, Tesla’s new Standard models fall well under that ATP, meaning they technically do qualify as “affordable.” However, realistically speaking, affordable does not mean “under the national average.”

It means accessible for low-income families, single-parent households, and other groups. This would likely be under $30,000.

Déjà Vu with the Cybertruck Rear-Wheel-Drive

When Tesla offered the Cybertruck RWD, it stripped out many of the best features of the Cybertruck, such as the adjustable air suspension, powered tonneau cover, and interior materials, just to name a few.

It was $10,000 less than the Cybertruck AWD, but many people essentially viewed it as a way to push consumers toward the more expensive variants, since the discount was a better value than missing out on features.

Tesla released the Cybertruck RWD to make the AWD look like a deal

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Something similar could happen with the Standard models. With it only being a few thousand dollars less than the Premium Model 3 and Model Y, some consumers will see it as a better option to go with the more expensive trim levels.

Even if they don’t, many car buyers will see it as a deal to grab the Standard versions.

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Tesla bull sees a new path to 600,000 deliveries per quarter

“We believe the launch of a lower cost model represents the first step to getting back to a ~500k quarterly delivery run-rate, which will be important to stimulate demand for its fleet with the EV tax credit expiring at the end of September.”

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Credit: Tesla

Tesla (NASDAQ: TSLA) bull Dan Ives of Wedbush Securities published a new note to investors on Thursday evening, which seemed to open up the possibility of the automaker returning to a growth rate in terms of deliveries.

After nearly two years of leveling off with deliveries, which was expected, Tesla is now slated to potentially return to growth, Ives says, as it has introduced new, more affordable models. It launched its Standard offerings for the Model 3 and Model Y this week, a strategy to bring cheaper cars to customers amid the loss of the $7,500 tax credit.

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In his note to investors, Ives said:

“We believe the launch of a lower cost model represents the first step to getting back to a ~500k quarterly delivery run-rate, which will be important to stimulate demand for its fleet with the EV tax credit expiring at the end of September.”

Although these cars come in only slightly under $40,000, there is some belief that they will do two things: attract car buyers looking for an under-$40k EV with Tesla’s technology and infrastructure, or push those on the fence to the now-Premium models, which are simply the Long Range Rear-Wheel-Drive and Long Range All-Wheel-Drive.

Ives said in the note that Tesla’s plans for a $25,000 car are “on hold,” but it seems as if that vehicle will be the Cybercab, which the company unveiled a year ago today.

That project seems to be moving forward as well, based on what we saw at both Fremont and Gigafactory Texas yesterday. At Fremont, the Cybercab was spotted on the Test Track, while crash-tested units were spotted at the factory in Austin.

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After the Standard models were rolled out and the Cybercab or another $25,000 unit arrives, Ives believes Tesla could actually get closer to 600,000 deliveries per quarter, he said on CNBC this morning:

Moving forward, Tesla has much more going for it than its potential growth in quarterly deliveries. Ives recognizes that a majority of what Tesla’s value will come from in the future: AI and autonomy.

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Ives said:

“The AI valuation will start to get unlocked in the Tesla story and we believe the march to an AI driven valuation for TSLA over the next 6-9 months has now begun in our view with FSD and autonomous penetration of Tesla’s installed base and the acceleration of Cybercab in the US representing the golden goose for Musk & Co. We believe Tesla could reach a $2 trillion market cap early 2026 in a bull case scenario and $3 trillion by the end of 2026 as full scale volume production begins of the autonomous and robotics roadmap.”

Ives and Wedbush maintained their $600 price target and ‘Outperform’ rating on Tesla stock.

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