Ford CEO Reveals Reason for Test Driving Xiaomi: Tesla Has No Updated Models
On April 20th, according to Business Insider, Ford CEO Jim Farley stated there was a reason he test drove the Xiaomi SU7 instead of a Tesla. During the "Quick Response" podcast last Friday, the host asked Farley why he chose to test drive the Xiaomi SU7 in 2024 to assess competitor strength, rather than Tesla.
Farley answered that to defeat Chinese competitors in the automotive industry, he doesn't necessarily need to focus on Tesla.
“I’m not knocking Tesla, they’ve been doing a great job, but they don’t have an updated model,” Farley said.
He stated that considering cost, supply chain, and manufacturing processes, Chinese automotive brands like BYD are “the best in the industry.”
“Now, if we’re smart, we should learn from BYD’s cost competitiveness and then compete in the segments where we understand customer needs best,” Farley said. “The next wave of electric vehicle customers in America want pickup trucks, SUVs, and a variety of different vehicle styles, but they want to spend $30,000 on them, not $50,000 like the first wave of customers. They want affordability.”
Farley said that China’s progress in the automotive field is both awe-inspiring and worthy of respect. This is a point he has emphasized repeatedly over the past few years.
In 2024, Farley stated in a podcast interview that he has been driving the Xiaomi SU7 for six months and doesn't want to give it up. Earlier this April, he stated on "Fox & Friends" that the entry of Chinese cars into the United States would be a “devastating” blow to American manufacturing, calling manufacturing the “heart and soul” of America.
Just as Farley made these remarks, Ford is shifting from producing the all-electric F-150 Lightning pickup truck to developing smaller, more affordable, and hybrid models. Ford announced in December last year that this strategic shift would cost the company approximately $19.5 billion.
Currently, Ford’s cheapest hybrid model is its Maverick XL pickup, with a starting price of around $28,000. Tesla’s cheapest model is the Model 3, with a starting price of $36,990.
As of press time, Tesla has not commented on this matter.