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Elon Musk and Tesla changed the way consumers think about and look at cars.
They forced the entire automotive industry to switch to electric vehicles and transform the technology into the future of a sector that is vital to the economy.
Today, almost every car manufacturer – legacy automakers, upstarts, luxury brands, sports car manufacturers – offers an electric or plug-in hybrid model. Groups are investing billions of dollars in the development of electric vehicles.
Consumers are also watching the developments, as their demand for these green vehicles is rising sharply, even if the cars are still expensive and the number of charging stations lags behind. Charging is still time-consuming, and EV owners have to plan their trips around the geography of charging stations, which is a particular headache.
Overall, the view of electric vehicles has changed dramatically and positively, and authorities are increasingly encouraging consumers to buy electric vehicles by expanding tax incentives in major legislation. One of the main goals of the Biden administration’s anti-inflation law is to encourage the development of affordable electric vehicles.
“We’re going to challenge Tesla” – Ford’s Farley
All of these factors mean that Tesla’s competitors have gradually begun to close the large market gap between them and Musk’s group.
One such rival is Ford (F) – Get a free report. The Blue Oval is one of the few automakers that has publicly made it clear that its main rival is Tesla (TSLA) – Get a free report.
“We intend to challenge Tesla and all comers to become the best EV manufacturer in the world,” Ford CEO Jim Farley said last April. “This is something none of us would have believed two years ago.”
Ford has given itself the means to compete with the market leader: Farley began by separating the company’s production of gasoline vehicles from electric vehicles. He created Ford Blue for traditional cars and Ford Model e EVs.
The goal is to enable Ford Model el to operate like a technology start-up company that can quickly change and adapt to any situation. Ford, like most automakers, has adopted the recipes that work at Tesla.
One example is over-the-air delivery of vehicle software updates with new features and functionality.
When an update is available, vehicle owners will be notified and given instructions on how to do it themselves. This keeps their vehicles up-to-date with the latest updates and provides the automaker with a steady source of income through subscription service updates.
Farley has also adopted a profitable strategy for the first models it develops. He chose vehicles that resonated with consumers. Ford’s first two electric models are an electric version of the iconic F-150 pickup and a green version of the Ford Mustang.
The first is the F-150 Lightning, the vehicle that will entice America to switch to electric vehicles.
Ford
“Congratulations Jim Farley” – Tesla Musk
The Ford Mustang Mach-E plays on the sentimentality and memories surrounding the nearly 60-year-old Mustang, an internationally iconic sports car.
The company just announced that it has built the 150,000th Mustang Mach-E since production began nearly two years ago. This is a significant achievement in light of the supply chain problems that have plagued the industry and the sharp rise in prices of key raw materials for electric vehicle batteries, such as nickel and cobalt.
This is a “significant milestone as the company ramps up production of electric vehicles to 600,000 per year by the end of 2023 and to more than 2 million per year by 2026,” the company said in a press release.
The vehicle will be available in 37 countries by 2023, up from 22 in the first year, and Ford plans to sell it in other countries as well.
“Nearly all of the Mustang Mach-E’s growth to date has come from customers replacing an internal combustion vehicle with an electric vehicle — more than 8 in 10 customers in the U.S. and 9 in 10 in Europe,” Ford said.
Musk, who knows well how difficult it is to mass produce electric vehicles, is a team player in the industry and just praised Ford’s achievement.
The Techno King, his title at Tesla, is rarely seen praising the competition, even as he believes the more electric cars on the road, the more cemented his legacy will be.
“Congratulations @jimfarley98 @Ford!” the billionaire tweeted on Nov. 30 at Ford and Farley.
“Thanks @elonmusk. Lots of work ahead ⚡️” Farley replied.
However, it’s important to remember that while Tesla has been ceding market share to its rivals, the company is still the EV market leader, with two-thirds (65%) of the market in the US, according to S&P Global. Mobility.
Of the more than 520,000 electric vehicle registrations in the US in the first nine months of 2022, about 340,000 were Teslas.
Its rivals still have a long way to go.
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