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.
Elon Musk said he is planning to give “every one of his SpaceX shares to every kid in America” in 2027, stating that “this will be the first of many.”
SpaceX went public earlier this year, and its stock price has been relatively stable since leveling off shortly after its IPO. Based on its current price, it’s a gift of just over $10 billion to children across the United States.
It appears to be closely related to President Donald Trump’s bank accounts for children, which were set up earlier this year as Trump Accounts.
Just hours earlier, Anthropic had announced the establishment of its Anthropic Public Benefit Fund, “a new wholly-owned entity dedicated entirely to public benefit.” Musk responded by stating he recommended “giving the shares directly to the public,” and that he would be doing it that way.
Just a little bit later, Musk said children across the U.S. would be getting a share from him:
Next year, I will give one of my SpaceX shares to every kid in America.
This will be the first of many.
— Elon Musk (@elonmusk) October 19, 2026
There are roughly 70 million children, meaning someone under the age of 18, in the United States, according to the Federal Interagency Forum on Child and Family Statistics. Musk’s ownership of SpaceX stock shows he has around 849 million Class A shares of SpaceX stock, according to filings with the SEC.
Elon Musk revealed in a post on X that “Permits were impossible to get,” explaining the fate of The Boring Company’s most ambitious East Coast proposal.
The comment responded to a query about what became of his July 20, 2017 announcement that he had “just received verbal govt approval” for an underground Hyperloop connecting New York City, Philadelphia, Baltimore, and Washington, D.C., capable of carrying passengers from the Big Apple to the Nation’s Capital in just 29 minutes.
The Boring Company receives verbal ‘approval’ to build NY to DC Hyperloop tunnel
The 2017 post, which envisioned city-center stations and multiple elevators in each city, sparked immediate scrutiny. Local and state officials in New York, Philadelphia, Baltimore, and D.C. said they had no knowledge of any approval. A White House spokesperson confirmed only “promising conversations” about the transformative infrastructure.
Musk clarified shortly after that there was “still a lot of work” to do for formal approvals.
@cybrtrkguy Permits were impossible to get
— Elon Musk (@elonmusk) October 19, 2026
Limited progress followed, as Maryland Governor Larry Hogan’s administration issued a conditional utility permit and supported work near Fort Meade. In 2018, Washington, D.C., granted a preliminary permit for site preparation and excavation on a vacant lot at 53 New York Ave. NE in the NoMa neighborhood, which The Boring Company said could become a station.
A draft environmental assessment for a D.C.-Baltimore segment was released in 2019. Yet, by April 2021, the company had removed the project from its website, and the Federal Highway Administration reported receiving no indication of further interest. Communication with Maryland officials had ceased.
The full corridor would have required coordination among the District of Columbia, Maryland, Pennsylvania, New York, the Federal Highway Administration, the Army Corps of Engineers, the National Park Service, and other agencies.
Environmental reviews under the National Environmental Policy Act, utility clearances, and approvals for novel infrastructure added to the overall complexity of the project and its approval.
Speculation on the permitting barriers centers around a few factors, but a multi-state, multi-level route involving unproven high-speed vacuum-tube technology inherently triggers exhaustive safety, environmental, and engineering reviews that can stretch for years, even for conventional projects.
There are also other elements, of course, like officials who may face political exposure if a privately funded, untested system encountered anything such as cost overruns, delays, or safety issues. On the outset of this project, there were limited things such as engineering plans or demonstrated technology maturity, which also added to the potential skepticism.
The East Coast vision for Boring Co., once framed as a privately funded revolution that could reshape Northeast travel, quietly ended without construction of the promised network. Musk’s recent statement frames the outcome as a regulatory impasse, unfortunate but not unexpected.
Tesla CEO Elon Musk took to his social media platform X on Sunday to remind everyone that the Roadster’s true meaning is not about company growth or adding dollars to shareholders’ pockets. Sometimes, you just do things because you can.
Following the Roadster’s epic unveiling event last Thursday, skeptics and critics of the company or the project itself came out to say that the vehicle is a pointless project because it is not geared toward growing the company, delivering supreme margins for profitability, nor does it contribute to the big picture of Artificial/Super Intelligence.
But that’s just the thing: Roadster is not meant to be some shareholder dream; it’s meant to be a vehicle that people buy just because it is something awesome, unique, and the first of its kind.
Tesla Roadster: Three configs, one can fly, 0-60 in 0.8 seconds
Musk had to remind those who are skeptical about the Roadster’s importance to the company mission that while it is not a major contributor to Tesla’s long-term goals, it is something that is being built just because it can be:
“Optimus and Cybercab will be the vast majority of Tesla’s value. The only things that will scale to incredible size (K2 and beyond) economically are super intelligence, robots, solar power, and mass to space. And, of course, if you have the first two, the rest will follow. But Roadster is super cool, so we’re doing it anyway.”
Musk has said on many occasions that Optimus would be the project that would make up the vast majority of Tesla’s value in the coming years.
Robotics will be a major focus of Tesla over the coming years, especially as Musk believes Optimus will enable work to be optional for humans and will enable what he calls “High Universal Income.”
Optimus and Cybercab will be the vast majority of Tesla’s value.
The only things that will scale to incredible size (K2 and beyond) economically are super intelligence, robots, solar power and mass to space.
And, of course, if you have the first two, the rest will follow.
But Roadster is super cool, so we’re doing it anyway.
— Elon Musk (@elonmusk) October 18, 2026
Cybercab will be a passive income opportunity for owners, Musk and Tesla have said for a very long time, as a fleet of self-driving vehicles will operate within a ride-hailing Robotaxi service that won’t require a human driver to be present.
Tesla investors are more than enthusiastic about the company’s future projects, at least from a general consensus perspective. However, it is important to note that the Roadster is a fun and cool project that pushes the boundaries of what people thought was possible for an automobile.
What we saw last week was the first true example of a flying car, and despite the backlash about how it might not contribute to Tesla’s grand ambitions, it’s okay to have fun sometimes, too.
Elon Musk will give ‘every kid in America’ a SpaceX share in 2027
Elon Musk reveals why Boring Co’s biggest East Coast project never happened
Tesla CEO Elon Musk reminds everyone about Roadster’s true meaning
SpaceX reveals how its 1 Million AI satellite network will work and prevent space collisions
Tesla Roadster: Three configs, one can fly, 0-60 in 0.8 seconds
