Ford CEO Admits Tesla and Chinese EVs Are ‘Shockingly’ Better and Faster to Build
In a recent interview, Ford’s CEO Jim Farley said he was shocked when the company tore down a Chinese electric car. Hello, my friends. Welcome to the channel. I’m Sam Evans. And interestingly, this news article came out on the same exact day that Xiaomi won. It won the Giga Casting competition in North America. So, there’s an article here, guys. In fact, there’s numerous articles. Xiaomi U7. I just drove one of these uh a week ago. [Music] Earns the highest structural honor in the North American die casting competition. That’s basically structural battery packs and also giga casting. So obviously um Xiaomi are doing giga casting similar to Tesla and Xiaopang or Xping as well. Now, bit of a confusing article here. Car News China says, “Shia’s U7 electric SUV has been recognized for its engineering innovation after winning the best structure award at the 2025 International Diecasting Competition, the event’s top honor. The recognition highlights the U7’s 20in1 integrated diecast aluminium triangular beam, a complex component that combines crash force management, thermal system integration, and space efficiency in a single structure as shared by Xiaomi CEO Jun Lee. To be fair though, um this is a Chinese company innovating on what Tesla had already have already done. So yeah, it’s really cool what they’re doing, but I don’t think it’s really fair what Kanu is trying to trying to imply that Xiaomi are the ones who innovated on this concept when it was really it was really Tesla that begun this this whole um YouTube’s new algorithm means that you’re often not getting all of our videos in your feed. There’s 7,500. I’m pretty sure you’re probably not seeing a lot of them. In the description, there is a link to our newsletter. Click on that and you can get an update every day of all the latest news in the electric car industry. this different way began this different way of manufacturing a car. But getting back to what Jim Farley had to say, he um he said he was shocked, right? Not long after the Ford boss remarked that the threat from Chinese automakers now exceeds what Japanese car makers posed in the 1980s, Jim Farley described the shocking moment that spurred him to rethink the company’s direction. He said Ford Ford’s engineers were taken aback when they began tearing down both the Tesla Model 3 and several Chinese built electric cars, realizing just how far ahead those manufacturers had moved in terms of cost, efficiency, and software integration. So, three real areas here. I was very humbled when we took apart the first Tesla Model 3 and started to take apart the Chinese vehicles. He told former Wall Street Journal reporter Monica Langley at the Office Hours Business Edition podcast. He said, “When we took them apart, it was shocking what we found.” That’s a direct quote. Ford’s engineers quickly learned that the Mustang Mache carried an extra mile of electric wiring compared with the Tesla Model 3, adding unnecessary weight and complexity. And of course they also learned that Tesla and other manufacturers were using giga casting which completely changes and improves the efficiency, the structural rigidity, the weight of an EV. That revelation though and others like it convinced Jim Farley to separate the company’s electric operations into a dedicated arm called the Model E division in 2022. basically what Ford was trying to do. They’re trying to build EVs the same way they built internal combustion cars for the last 100 years and that’s what not what Ford should have been doing. EVs are exploding in China, Jim Farley said, noting that the Chinese government had put its foot on the economic scale in support of batterypowered vehicles. We can’t walk away from EVs, not just for the US, but if we want to be a global company, I’m not just just going to seed that to the Chinese, he said. Financially, Ford’s move to establish the Model Eye division hasn’t paid off quite yet. They’ve lost more than 5 billion just in the last 12 months alone. Although you could say that was also an investment, but Farley isn’t prepared to throw in the towel yet. The news been saying that Ford are cancelling their future EV production. That’s not true. That’s fake news. He said this, “I knew it was going to be brutal business-wise. My ethos is take on the hardest problems as fast as you can and do it sometimes in public because you’ll solve them quicker that way. Last year, Farley revealed that he had been driving a Xiaomi Sue 7 daily and praised the electric sedan. Evidently, he understands not only the importance of answering the threat posed by the Chinese, but also just how quickly Ford needs to respond. I drove a SUE7 uh about week a week ago as well and I’ve got to say I was impressed by it, but I was probably even more impressed by Xpang’s new P7. One of the company’s most crucial upcoming projects at Ford is a midsize electric pickup truck priced around $30,000. Built on a brand new architecture designed to underpin several future models and using lithiumion phosphate batteries. It represents the next test of whether Ford can match the speed and efficiency of the competition. You know, Ford know that they can’t just sell Mustang Machis and they can’t just do the status quo. Jim Fley is very much aware of that. He knows that um what Xiaomi and Xpang and Tesla are all doing. He’s aware that unless Ford innovates very very quickly, much faster than what it’s done in the past, that um they are in big trouble. Let me know your thoughts. Thanks for watching. [Music] Four years ago, I predicted that American car companies could go bankrupt because of China. Now, four years later, Ford CEO finally agrees with me. YouTube’s new algorithm means that you’re often not getting all of our videos in your feed. Pretty sure you’re probably not seeing a lot of them. In the description, there is a link to our newsletter. Click on that and you can get an update every day of all the latest news in the electric car industry. Hello, my friends. Welcome to the channel. I’m Sam Evans. You’re watching the Electric Viking. And Jim Farley has come out in support of the Electric Viking saying that um I was right when I made the prediction back in 2021. He didn’t do this. Of course, I’m sure he doesn’t know I exist. I’m certain he doesn’t know I exist, but Jim Farley has come out and said that um American car companies are at risk of going bankrupt because of Chinese brands and their meteoric rise. So, the boss of Ford, Jim Farley, has warned that the rise of Chinese automakers could spell doom for American vehicle manufacturers, calling them an existential threat. Now, the irony is that the CEO of Ford actually drives a Chinese EV called the Xiaomi Sous7, and I drove one of those two days ago. The SU7 is a good car, but I do think there’s actually a better car you can buy in China that I tested on the same day. In fact, I tested the previous day, I should say, and then it’s an Xbang. Anyhow, getting back to this story. Speaking to CBS Sunday morning, Ford’s chief Jim Farley said there’s some similarities between its rivalry it has with China today and the competition it was facing in the 80s when Japanese car brands were gaining popularity. Oh, I think it’s exactly the same thing, but it’s on steroids, Farley told CBS. They have enough capacity in China with the existing factories to serve the entire North American market. [Music] [Music]
Ford CEO Admits Tesla and Chinese EVs Are ‘Shockingly’ Better and Faster to Build
Ford’s CEO openly acknowledges that Tesla and Chinese EV makers are outperforming legacy automakers with “shockingly” faster and more efficient production. This rare admission highlights the widening gap in manufacturing innovation and underscores the urgent need for Ford to reinvent its strategy.
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👇Reference to the news/charts & videos used in this video:
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