Ford CEO Jim Farley says automaker’s had shakeup after ‘humbling’ discovery he found in Tesla Model 3, Chinese EV cars

Ford Motor Company Chairman and CEO Jim Farley said he was “humbled” and “shocked” by Tesla and its Chinese rivals tearing apart their cars. His discovery sparked a shake-up at the American automaker, according to a Business Insider report.

Speaking on the Office Hours: Business Edition podcast, the business leader said the shock pushed him to make big changes to make Ford competitive against Tesla and electric vehicle (EV) makers in China.

What was Jim Farley’s humbling, shocking discovery?

According to Farley, when taking competitors’ vehicles apart (a standard practice in the auto industry), Ford found that Tesla’s Model 3 had about a mile less wiring than Ford’s Mustang Mach-E. He added that the numbers are similar compared to Chinese EV manufacturers.

“I was very humble when we took apart the first Model 3 Tesla and started tearing apart Chinese vehicles. What we found when we took them apart was shocking,” he said. Farley added that the findings spurred changes at Ford, which has struggled in recent years in the highly competitive auto market.

The company created the Model E division in 2022 to promote innovation in electric vehicles. According to the Fortune report, the division will cost the company $5 billion in 2024. But Farley said he sees it as a challenge that must be overcome.

“In my opinion, tackle the toughest problems as quickly as you can, and sometimes do it publicly, because that way you solve them faster,” he said.

Ford is doubling down on electric vehicles

As for the future of EV, Farley felt Ford couldn’t leave the segment. “We can’t move away from electric vehicles, not just for the United States, but if we want to be a global company, I’m not going to leave it to the Chinese,” Farley said on the podcast.

This is clearly seen in the company’s business moves. According to a Fortune report, the company said it will devote $5 billion to electric vehicle production in August 2025, which will include changing its production process and renovating its Kentucky facility.

Ford’s Kentucky plant produces the company’s F-Series Super Duty trucks. It was also stated that the plan is for the facility to produce Ford’s $30,000 electric pickup truck, which is planned to be released in 2027.