Ford announced earlier this week that it would delay or completely cancel several electric vehicle models in an effort to align with consumer trends and hone in on a more profitable business after losing billions chasing Tesla.
While it may not be the most ideal thing, it is the best strategy for Ford right now, as it will shift more toward hybrids, leaning on current EV offerings and stopping the bleeding on financials.
Ford was arguably the most committed when it came to legacy automakers. It had put forth a solid investment plan that would see it expand its EV offerings over the course of a decade, bringing exciting offerings to each market based on its needs.
Ford’s love affair with EVs softens as profitability and consumer trends take focus
However, being the most committed does not always mean the most successful. Ford had suffered tremendous losses in 2023 because of its overwhelming commitment to EVs, so much so that CEO Jim Farley admitted at one point that it was on the lower end of its investment range for electrification moving forward.
“We’ll probably be on the low end of that range,” Farley said earlier this year about the $8 billion to $9 billion investment range. “And we’re being very consistent about our discipline on profitability.”
But now, things have totally changed.
Earlier this week, Ford all but admitted that it simply did not have the time or the money to keep going with its EV commitment. It was costing it billions, and instead of chasing after Tesla, it did what it should do: chase after money to keep it afloat. As Van Wilder’s dad said in the movie, “Sometimes in life, you have to realize a poor investment and cut your losses.”
Ford made the right choice. It was going along with the EV goals too far and too hard. Honda’s executives said recently that you simply cannot force people to buy something they don’t want. Right now, Teslas are what people want, at least in the United States, as the automaker, despite a growing number of competitors, continues to hold a sizeable lead in market share over competitors.
The lack of a truly competitive EV offering that appeals to consumers is what the issue is. There needs to be a product that truly outperforms Tesla in every way. That’s how people will switch, and that’s how EVs will be worth it. This goes for all companies, not just Ford.
To be the best, you have to beat the best.
“We’re committed to creating long-term value by building a competitive and profitable business,” Ford’s Vice Chair and CFO John Lawler said earlier this week as the company announced its softening EV stance. “With pricing and margin compression, we’ve made the decision to adjust our product and technology roadmap and industrial footprint to meet our goal of reaching positive EBIT within the first 12 months of launch for all new models.”
It will still bring forward a variety of new models, including a new truck, in the coming years. But for now, it is best that Ford does what it needs to do: scale back its commitment to EVs and continue to rely and lean on the Mustang Mach-E, F-150 Lightning, and E-Transit for the time being. The truth is that Ford simply did not and did not have enough of a consumer base that is interested in EVs, thus not justifying its mass commitment, and it might have cost them their business if it kept up the shtick.
From left to right: Ford’s F-150 Lightning, E-Transit van, and Mustang Mach-E (Credit: Ford)
Tempering its EV push and bringing new models as people want them is going to help Ford maintain capital while also softening the negative effects EVs have had on its financials. Ford has lost money on every EV it’s ever delivered to a customer, although it may not be the best thing for it to continue acting like things are all okay.
But in the meantime, Ford can do a few things to help consumers: offer affordable vehicles that cater to needs and develop a vehicle lineup that truly makes consumers on a massive scale consider things other than Tesla.
Leaning on classic names like the Mustang and F-150 and electrifying them might have won some people over. But it seems, especially with the popularity of the Bronco and Bronco Sport, Ford is missing a huge opportunity by not even hinting toward an EV version of the vehicle.
I think a lot of people might be disappointed, but this announcement seemed like it was coming sooner rather than later. As someone who has driven Fords and still owns one, I was hoping to make my next vehicle an electric Bronco. I have talked highly about the F-150 Lightning. But it is evident that it is still making a lot of its money selling the gas-powered F-Series and its other tried and true vehicle models.
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.
News
Samsung nears Tesla AI chip ramp with early approval at TX factory
This marks a key step towards the tech giant’s production of Tesla’s next-generation AI5 chips in the United States.
Samsung has received temporary approval to begin limited operations at its semiconductor plant in Taylor, Texas.
This marks a key step towards the tech giant’s production of Tesla’s next-generation AI5 chips in the United States.
Samsung clears early operations hurdle
As noted in a report from Korea JoongAng Daily, Samsung Electronics has secured temporary certificates of occupancy (TCOs) for a portion of its semiconductor facility in Taylor. This should allow the facility to start operations ahead of full completion later this year.
City officials confirmed that approximately 88,000 square feet of Samsung’s Fab 1 building has received temporary approval, with additional areas expected to follow. The overall timeline for permitting the remaining sections has not yet been finalized.
Samsung’s Taylor facility is expected to manufacture Tesla’s AI5 chips once mass production begins in the second half of the year. The facility is also expected to produce Tesla’s upcoming AI6 chips.
Tesla CEO Elon Musk recently stated that the design for AI5 is nearly complete, and the development of AI6 is already underway. Musk has previously outlined an aggressive roadmap targeting nine-month design cycles for successive generations of its AI chips.
Samsung’s U.S. expansion
Construction at the Taylor site remains on schedule. Reports indicate Samsung plans to begin testing extreme ultraviolet (EUV) lithography equipment next month, a critical step for producing advanced 2-nanometer semiconductors.
Samsung is expected to complete 6 million square feet of floor space at the site by the end of this year, with an additional 1 million square feet planned by 2028. The full campus spans more than 1,200 acres.
Beyond Tesla, Samsung Foundry is also pursuing additional U.S. customers as demand for AI and high-performance computing chips accelerates. Company executives have stated that Samsung is looking to achieve more than 130% growth in 2-nanometer chip orders this year.
One of Samsung’s biggest rivals, TSMC, is also looking to expand its footprint in the United States, with reports suggesting that the company is considering expanding its Arizona facility to as many as 11 total plants. TSMC is also expected to produce Tesla’s AI5 chips.
News
Anti-Tesla union leader ditches X, urges use of Threads instead
Tesla Sweden and IF Metall have been engaged in a bitter dispute for over two years now.
Marie Nilsson, chair of Sweden’s IF Metall union and a prominent critic of Tesla, has left X and is urging audiences to follow the union on Meta’s Threads instead.
Tesla Sweden and IF Metall have been engaged in a bitter dispute for over two years now.
Anti-Tesla union leader exits X
In a comment to Dagens Arbete (DA), Nilsson noted that her exit from X is not formally tied to IF Metall’s long-running labor dispute with Tesla Sweden. Still, she stated that her departure is affected by changes to the platform under Elon Musk’s leadership.
“We have stayed because many journalists pick up news there. But as more and more people have left X, we have felt that the standard has now been reached on that platform,” she said.
Jesper Pettersson, press officer at IF Metall, highlighted that the union’s departure from X is only indirectly linked to Tesla Sweden and Elon Musk. “Indirectly it does, since there is a lot of evidence that his ownership has caused the change in the platform to be so significant.
“We have nevertheless assessed that the platform had value for reaching journalists, politicians and other opinion leaders. But it is a microscopic proportion of the public and our members who are there, and now that value has decreased,” Petterson added.
IF Metall sees Threads as an X alternative
After leaving X, IF Metall has begun using Threads, Meta’s alternative to the social media platform. The union described the move as experimental, noting that it is still evaluating how effective the platform will be for outreach and visibility.
Pettersson acknowledged that Meta also does not operate under Sweden’s collective bargaining model, but said the union sees little alternative if it wants to remain visible online.
“In a perfect world, all large international companies would be supporters of the Swedish model when they come here. But unfortunately, the reality is not like that. If we are to be visible at all in this social media world, we have to play by the rules of the game. The alternative would be to become completely invisible, and that would not benefit our members,” he said.
Despite many recent rumors and various reports, Elon Musk confirmed today that SpaceX is not developing a phone based on Starlink, not once, but twice.
Today’s report from Reuters cited people familiar with the matter and stated internal discussions have seen SpaceX executives mulling the idea of building a mobile device that would connect directly to the Starlink satellite constellation.
Musk did state in late January that SpaceX developing a phone was “not out of the question at some point.” However, He also said it would have to be a major difference from current phones, and would be optimized “purely for running max performance/watt neural nets.”
Not out of the question at some point. It would be a very different device than current phones. Optimized purely for running max performance/watt neural nets.
— Elon Musk (@elonmusk) January 30, 2026
While Musk said it was not out of the question “at some point,” that does not mean it is currently a project SpaceX is working on. The CEO reaffirmed this point twice on X this afternoon.
Musk said, “Reuters lies relentlessly,” in one post. In the next, he explicitly stated, “We are not developing a phone.”
Reuters lies relentlessly
— Elon Musk (@elonmusk) February 5, 2026
We are not developing a phone
— Elon Musk (@elonmusk) February 5, 2026
Musk has basically always maintained that SpaceX has too many things going on, denying that a phone would be in the realm of upcoming projects. There are too many things in the works for Musk’s space exploration company, most notably the recent merger with xAI.
SpaceX officially acquires xAI, merging rockets with AI expertise
A Starlink phone would be an excellent idea, especially considering that SpaceX operates 9,500 satellites, serving over 9 million users worldwide. 650 of those satellites are dedicated to the company’s direct-to-device initiative, which provides cellular coverage on a global scale.
Nevertheless, there is the potential that the Starlink phone eventually become a project SpaceX works on. However, it is not currently in the scope of what the company needs to develop, so things are more focused on that as of right now.
Samsung nears Tesla AI chip ramp with early approval at TX factory
Anti-Tesla union leader ditches X, urges use of Threads instead
