Ford’s electric vehicle (EV) lineup is encountering growing competition and potential headwinds as newer, lower-cost electric pickups like the Tesla Cybertruck and Chevrolet Silverado EV gain traction in the U.S. market.
While Ford has maintained its commitment to expanding its EV offerings, including plans for more affordable models such as a smaller SUV and pickup, the timeline for these vehicles to reach the market could leave the company trailing behind its rivals for at least another two years.
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Since the launch of the first F-150 Lightning models in May 2022, Ford has seen a mix of success and struggle in the EV space. Despite setting a new record for EV sales in January, the F-150 Lightning has seen a decline in sales, dropping 15.5% to just 1,907 units in January compared to 2,258 units in the same month of 2024.
In contrast, the Mustang Mach-E, Ford’s all-electric SUV, helped the company achieve a surge in sales, with 3,529 units sold in January, reflecting a 172% year-over-year increase from 1,295 vehicles sold in January 2024.
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However, Ford’s aging lineup of electric models, including the Lightning and Mach-E, faces increasing competition from newer electric pickups. According to Cox Automotive’s 2024 EV sales report, Tesla’s Cybertruck led the electric pickup market with 38,965 units sold in 2024, outpacing the Lightning’s 33,510 units.
Even the Chevy Silverado EV, now available in the LT trim, is quickly catching up. GM’s electric pickup sold 7,428 units in the last quarter of 2024, and Ram’s upcoming electric 1500 REV is expected to add even more competition.
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To stay competitive, Ford is looking to a new, low-cost EV platform being developed by a team of former Tesla, Lucid, Rivian, and Apple executives in California. The platform will support a series of smaller, more affordable electric vehicles, with the first models expected to debut by 2027.
These vehicles, including a smaller electric SUV and pickup, are anticipated to start at under $30,000, helping Ford appeal to a broader customer base. However, by 2027, the market will be even more crowded, with Rivian’s R2 series and Volkswagen’s Scout brand both entering the fray.
In addition to fierce competition, Ford faces potential economic and political challenges. Former President Donald Trump has threatened to impose a 25% tariff on imports from Mexico, where the Mustang Mach-E is currently built. Such a move could further strain Ford’s ability to remain competitive in a rapidly evolving market, especially as the company works to revamp its EV strategy to meet the demands of U.S. consumers and fight off global competitors like Tesla and BYD.