Tesla Motors Inc (NASDAQ:TSLA) could receive fresh competition in the form of electric cars from Ford Motor Company (NYSE:F). Ford CEO Mark Fields said that the company has the expertise to build all-electric car to compete with Tesla, and such a product is “consistent with our product philosophy,” in an interview with USA Today.
Which model could Ford choose?
In a conference call, Fields said that Ford is capable of making a larger fully electric sedan, which would be a contender to Model S in performance, but it would not be a hatchback. According to Fields, Ford engineers bought a Tesla Model S, and have done a test drive and taken it apart and then put it together again.
Gates Capital Management's ECF Value Funds have a fantastic track record. The funds (full-name Excess Cash Flow Value Funds), which invest in an event-driven equity and credit strategy, have produced a 12.6% annualised return over the past 26 years. The funds added 7.7% overall in the second half of 2022, outperforming the 3.4% return for Read More
Tesla and Ford recently got into tussle over the Model E trademark, and as of now it is not clear which model Ford will bring an electric version of into the market. There is a strong possibility that the company might build a battery electric vehicle for Lincoln on a dedicated platform, which would allow the company to charge a premium price for the brand and position it as a Tesla competitor, says a report from Cleantechnica. Ford has taken numerous steps in promoting green technoology, but unlike Tesla, the company still needs to bring its own electric vehicle to market.
Are automakers working on Tesla like cars
This summer, Fields replaced Allan Mulally as the CEO of the iconic automaker. Mullaly had nothing in mind about competing with Tesla, and allotted a very small budget to Focus, but the price tag was way too high at $39,995. Even though the company dropped the price of Focus by $10,000, it is promoting its two plug-in hybrid models, the Fusion Energi and C-Max Energi.
General Motors is also testing Tesla’s Model S against the Cadillac ELR, which indicates that the biggest names in the automobile industry are clearly concerned about Elon Musk’s electric car.
Tesla has urged automakers for long time to bring cleaner fuel in their cars, and in June the company even made its patents available to expedite the development of the high-performance electric cars by other auto manufacturers. The electric vehicle manufacturer said that the automakers along with the whole world would benefit from a common, rapidly-evolving technology platform.