Tesla may need to watch out: Ford bets on low-cost EV and robotaxi could change the game

Analysis of the rivalry between Ford and Tesla, focusing on the losses of the Model e and Tesla's push for autonomous driving and robotaxis.

In terms of competition, Ford and Tesla represent the epicenter of the automotive industry's dilemmas: investing heavily, reducing costs, and still seeking profitability while designing the future of autonomous mobility.

Tesla's narrative

There is much discussion about electric vehicle deliveries and revenue evolution in the sector. Competition is intensifying with rivals, including Ford, which is trying to expand market share with price and technology strategies. The critical point, however, is that subsidies for market gains are not sustainable in the long run.

Within this scenario, the performance of Ford's Model e segment has been an indicator of where the path might lead. In the last three years, this division has recorded losses that weigh on the balance sheet.

• Ford Pro: US$ 7.222 million (2023), US$ 9.007 million (2024), and US$ 6.843 million (2025)
• Ford Blue: US$ 7.462 million (2023), US$ 5.269 million (2024), and US$ 3.024 million (2025)
• Ford Model e: US$ (4.701) million (2023), US$ (5.105) million (2024), and US$ (4.806) million (2025)

In response, at the end of 2025, Ford announced a US$ 19.5 billion charge related to EV assets and detailed strategic changes to make the Model e profitable by 2029. Among the measures is a US$ 5 billion investment in a universal EV platform, focusing on producing affordable vehicles, starting with a mid-size pickup priced around US$ 30,000 in 2027.

Could Ford worry Tesla?

There are two points that help maintain the confidence of Tesla investors. First, there is a difference between selling cars and selling with sustainable profitability; Ford does not expect profit in the EV segment before 2029. The company points out that it may offer a lower total cost of ownership over five years than a used Tesla Model Y, which supports the pricing strategy.

Furthermore, Tesla continues to advance with lower-cost batteries and associated infrastructure. Ford is also investing in LFP batteries, while Tesla is building an LFP factory in Nevada and a lithium refinery, supporting the production of lower-cost models. Thus, the automaker led by Musk appears to already be responding to Ford's move in the price segment.

The future of mobility

Ford's track record in commercializing EVs comes with challenges, and if Tesla's vision of autonomous driving materializes, the value of owning a vehicle capable of autonomous driving—even if used as a robotaxi by its owner—may be a bigger trump card than simply owning a low-cost EV from Ford. And if the Cybercab takes off as expected, this could change the equation for consumers and the need to acquire a traditional EV.

In summary, Tesla investors do not need to strongly fear competition from Ford if Tesla fulfills its strategic plan.

Which aspect of this competition do you believe will define the future of mobility: full autonomy or lower total cost of ownership? Share your thoughts in the comments.