Ford CEO Jim Farley spent six months in 2024 driving a Xiaomi SU7—the Chinese tech company’s first electric vehicle. His conclusion: it was hard to give up.
“Nothing against Tesla. They’ve been doing great, but you know, they really don’t have an updated vehicle,” Farley said on the Rapid Response podcast. His target for Ford is not Tesla but BYD, the Chinese EV leader he calls “the best in the business” on cost, supply chain, manufacturing, and intellectual property.
BYD surpassed Tesla in revenue by 2025 and became the world’s biggest EV maker, though Tesla retains a $1.22 trillion valuation versus BYD’s $138 billion. The Chinese company was founded in 1995 as a battery maker and entered car manufacturing in 2003. It halted pure gas-car production in 2022, focusing on EVs and hybrids.
Chinese EVs remain barred from the U.S. by a 100% tariff, but have expanded elsewhere. Despite a 38.1% EU tariff, BYD’s European registrations soared to 18,242 in January from 6,884 a year earlier.
Critics argue Chinese automakers benefited from roughly $231 billion in government subsidies. Even Elon Musk acknowledged in 2024 that Chinese firms are “the most competitive car companies in the world.”
Ford is restructuring. A $19.5 billion write-down in December followed weaker-than-expected EV demand after Trump ended the EV credit. The company now prioritizes hybrids and extended-range electric vehicles. The F-150 Lightning will be retooled as an EREV, and a $30,000 electric pickup is planned for 2027.
Farley’s prescription: “If we’re smart, we’ll take the cost competitiveness of BYD, and then we’ll compete with that platform in parts of the market where we know our customers really well.”
Ford’s cheapest vehicle, the hybrid Maverick XL, starts at around $28,000. Tesla’s Model 3 begins just under $37,000. BYD’s Seagull hatchback costs $9,500 in China.