Why Ford CEO Is Warning Automaker’s Employees to Take Tesla Seriously ‘We Can’t Ignore This Competition Anymore’
Why Ford CEO Is Warning Automaker’s Employees to Take Tesla Seriously ‘We Can’t Ignore This Competition Anymore’

By Benzinga, Rachit Vats

Ford Motor Co. CEO Jim Farley is the latest legacy-automaker executive to warn employees that electric-vehicle segment leader Tesla Inc. needs to be taken seriously, Electrek reported on Monday, citing Detroit Free Press.

What Happened

Farley praised Tesla’s overall prowess in a recent internal meeting and said the Elon Musk-led company makes electric vehicles better than the rest and deserves that respect from the legacy player.

“If Ford was a trillion-dollar company, our stock would be worth about $250 a share. Think about the value creation of Tesla right now,” Farley said, adding that Tesla has the right resources, smart talent, and successful products.

Farley noted that Tesla’s Model 3 electric sedan is the best-selling vehicle in Europe and the UK and it is also the best-selling vehicle in California most months.

“Not just electric, but overall. If we’re going to succeed, we can’t ignore this competition anymore.”

Farley went on to praise Tesla for three things that it had done differently and how the Dearborn, Detroit-based automaker could learn from it.

Direct Sale Model

Farley told employees that, unlike Ford, which sells cars through dealers, Tesla’s direct-sale model is easy and sans any complexity and definitely an advantage.

“There’s no one in between. They make it so easy. Three or four clicks configuring the vehicle with not a lot of complexity to deliver it to the customer. Simple, non-negotiated pricing. A large reservation system as well as remote service,” Farley said.

Powertrain Expertise and Aftersales

Farley told employees Tesla ensures “customers pay less for a better” and do more to make the customer experience better based on data coming off the vehicles.


As per Farley, Tesla products are simple and that’s a huge differentiation compared to traditional, gas-powered vehicles.

“Tesla can scale quickly because of that complexity reduction. They can drive the cost down, which they have. They can keep processes simple.”

Why It Matters

Ford isn’t the only automaker issuing warnings internally over the threat posed by Tewsla. Volkswagen CEO Herbert Diess last week warned workers that the Musk-led company’s new German factory poses a major threat as the electric vehicle maker can build electric cars faster, as per a Bloomberg report.

Tesla has quickly clocked a $1 trillion market valuation, surpassing the combined market capitalizations of some of the biggest automakers in the world.

Ford, General Motors Co. and Volkswagen Group have begun picking up pace with their electrification plans and have set ambitious targets to outscore Tesla.

Price Action

Ford shares traded 4.65 percent lower at $19.18 a share on the latest check Wednesday.

Affiliate News Feeds

  • Reuters
  • Washington Examiner
  • The Federalist
  • The Epoch Times
  • The Guardian
  • The Gateway Pundit
  • Judicial Watch

By Tom Ozimek Elon Musk suggested that Twitter was acting under government orders to suppress free speech, with his remarks coming hot on the heels of the release of a trove of… [...]

By The Associated Press PALMDALE , Calif.—America’s newest nuclear stealth bomber made its debut Friday after years of secret development and as part of the Pentagon’s answer to rising concerns over a future… [...]

Union workers are lashing out at both political parties and President Joe Biden for the rail legislation signed to prevent a strike, calling the provisions a "slap in the face"… [...]

A former professor at the University of California San Diego said she gave all of her students "A" grades and no homework in a recently unearthed video. [...]

Usually when a person defrauds investors of millions of dollars and launders the funds to personal pet projects, he goes to jail. (See: Bernie Madoff.) But in FTX founder Sam… [...]

Insider documents released on Friday confirm Twitter’s decision to suppress the New York Post’s legitimate reporting about Hunter Biden’s laptop mere weeks before the 2020 presidential election was a political… [...]

A Department of Justice (DOJ) watchdog is seeking an independent examination into the collapse of cryptoexchange FTX, according to a recent court filing. The Justice Department is already investigating the… [...]

The State of Wyoming filed a second lawsuit against the Biden Administration, alleging that its suspension of oil lease sales were illegal. Gov. Mark Gordon (R-Wyom.) announced that his state… [...]

Minister says troops are on standby to replace striking ambulance workers and border staffThe Conservative party chairman has said the military is on standby to take the place of striking… [...]

Exclusive: Stage sequel to focus on then housing secretary, fire chief and two families devastated by 2017 fireA play dramatising the “merry-go-round of buck-passing” at the Grenfell Tower public inquiry… [...]

Over the last few years, the U.S. Military has been politicized by the left. This is having the unfortunate effect of eroding the public’s trust in the institution. Just in… [...]

In Elon Musk’s most recent Twitter Space, Musk shared how he felt about Ye’s recent Twitter ban. The usually calm and collected Musk let out a rare burst of raw… [...]

Secret Service Repeatedly Changes Its Story on Hunter Biden Gun Records What is the Secret Service Hiding about Biden Raid on Trump’s Home? Judicial Watch Sues to Find Out! Judicial… [...]

From Fox News: The Secret Service will not say why they changed their position regarding a government watchdog’s records request into Hunter Biden’s gun investigation records. Government watchdog Judicial Watch… [...]

NH Politician

NH POLITICIAN is owned and operated by USNN World News Corporation, a New Hampshire based media company specializing in the collection, publication and distribution of public opinion information, local,...