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Why Ford’s EV strategy shift is the best option for the company

(Credit: Ford)

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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.

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“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.

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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.

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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.

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 makes big change to encourage Full Self-Driving purchases

Tesla Full Self-Driving was recently proven to be about ten times safer than a human driver in terms of accident frequency.

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Credit: Whole Mars Blog | X

Tesla has made a big change to its Online Design Studio, hoping to encourage car buyers to purchase Full Self-Driving with their vehicles.

Now, when you look at ordering a car on Tesla’s website, the portion of the page that formerly showed a render of Full Self-Driving capabilities has been replaced by a compilation of the suite’s performance in a variety of challenging scenarios.

It’s a great way to show off FSD’s impressive ability to work through road conditions that can even stump human drivers.

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The move is much better than what the page previously illustrated. Now, people can see the true capabilities of the FSD suite and what it could do to change their perspective on how vehicles can be. Instead of a vessel of transportation, FSD turns cars into a semi-autonomous mode of travel.

Tesla Full Self-Driving is statistically very safe, logging about ten times the number of miles between accidents as human drivers, based on recent data the company released.

Tesla Q2 2025 vehicle safety report proves FSD makes driving almost 10X safer

It is available for purchase in two different ways: an outright purchase for $8,000 or in a monthly subscription for $99. This enables the software to essentially do a vast majority of the legwork of driving. Drivers must keep their eyes on the road and be prepared to take over if an intervention is needed.

However, FSD has been proven to be a very accurate and safe way to travel. Tesla recently released a video of a drive from the Bay Area to Los Angeles, a nearly seven-hour trip, under FSD without a single intervention ever needed:

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Tesla flexes its most impressive and longest Full Self-Driving demo yet

From a personal perspective, Tesla Full Self-Driving is a great way to travel because it truly takes a lot of the stress out of driving. In the past, I’ve used it during weekend Demo Drives to navigate around my town to see if it could handle some of the tougher traffic in my area. It became such an amazing and convenient alternative that when I went back to my car, I truly missed the advantage of having it.

I took a Tesla Model Y weekend-long Demo Drive – Here’s what I learned

However, I am picking up my Tesla Model Y this coming weekend and will enjoy it for the free three months before subscribing to the monthly program.

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Tesla offers new feature to save battery and reduce phantom drain

While in Low Power Mode, your vehicle continues to use energy for standby functions, screen activity, and Tesla app interactions. In cold weather, available energy may drop more quickly.”

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Credit: Tesla

Tesla is offering a new feature to help owners save battery and reduce phantom drain, an issue that some have complained of with their cars.

While Teslas are some of the most efficient EVs on the market, they utilize energy and battery life when they’re parked to keep certain features, like Sentry Mode, Summon Standby, and others, active in preparation for potential events that occur.

Keeping these features ready to perform utilizes energy, and if your car is parked at an airport where it could be sitting stagnant for a few days, the battery percentage could start to dwindle pretty significantly.

Because of this, Tesla is rolling out a new feature called “Low Power Mode,” which will automatically disable a handful of settings to combat battery dwindling and phantom battery drain.

Tesla writes in the release notes for the feature:

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“When Low Power Mode is enabled, your vehicle will conserve energy by automatically disabling the following features:

    • Sentry Mode
    • Summon Standby
    • Outlets
    • Keep Accessory Power On
    • Keep Climate On and Camp Mode
    • Scheduled Preconditioning
    • Cabin Overheat Protection

While charging with Low Power Mode enabled:

    • Sentry Mode and accessory power will remain available
    • Keep Climate On and Camp Mode are only available when Supercharging

While in Low Power Mode, your vehicle continues to use energy for standby functions, screen activity, and Tesla app interactions. In cold weather, available energy may drop more quickly.”

This feature seemed to be a reaction to a past issue that an owner had as their Cybertruck continued to utilize energy even though the pickup was parked at an airport and the owner was in Japan. The Cybertruck had utilized a lot of energy to keep standby functions active, which left the owner in an interesting spot when they returned.

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CEO Elon Musk stepped in, and it seems this feature might have been a reaction to that situation. This is an ideal thing to use if you’re looking to conserve your battery’s state of charge.

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Tesla is bringing back something it took from the Model 3…for a price

“Modify your Model 3 by replacing the turn signal buttons on your steering wheel with turn signal stalks. This modification is included in the purchase price and is installed by a Tesla Service Center.”

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Credit: Tesla

Tesla is bringing back the Model 3’s turn signal stalk in China after removing the part with the refresh of the all-electric sedan early last year.

However, it is going to cost you.

In 2024, Tesla launched the Model 3 “Highland,” a refreshed version of the vehicle that included several large-scale changes. One of the most noticeable was the lack of a turn signal stalk, something the company chose to remove and instead implement turn signal buttons on the steering wheel.

The buttons were met with mixed reviews, as some drivers complained that it was too difficult to get used to them. Others had no problem with the change, noting that it was slightly more convenient for them or that they enjoyed the minimalistic look.

Now, Tesla is offering Model 3 owners in China the opportunity to replace the stalk for a price of ¥ 2,499, or about $350:

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“Modify your Model 3 by replacing the turn signal buttons on your steering wheel with turn signal stalks. This modification is included in the purchase price and is installed by a Tesla Service Center.”

Tesla notes on its website that the service is available for Model 3 vehicles without stalks manufactured after February 7, 2025. Any car without a stalk that was manufactured before that date will have the service available to them in the future.

Installation can be performed at a Service Center or by the owner. However, Tesla notes that it is not responsible for any damages resulting from self-installation and recommends that the part be put in by an employee.

The cockpit of the Tesla lineup has been under intense scrutiny by the company in recent years. After a few changes to things like the stalk, steering wheel shape, and others, Tesla has usually given drivers the chance to have things reverted back to their preferences if they want.

They did this for the Model S and Model X a few years ago after implementing the yoke steering wheel.

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Tesla Steering Wheel Retrofits have started, and it’s easy to get rid of your yoke

The stalk was not supposed to be removed from the Model 3 and Model Y, but Tesla chose to do so with the refresh last year.

It seems the minimalization of the cockpit, overall, is a move that prepares drivers for autonomy, as eventually, Teslas will be void of pedals, steering wheels, and any other apparatus that are used to control the car.

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