A report by Bloomberg has just confirmed that Blue Oval is planning to take the fight to Musk’s doorstep by unleashing a compact $25,000 EV due in 2026. The news cannot be a coincidence as Tesla teased their most affordable EV at an annual shareholder meeting last year.
In Bloomberg’s report, it is also mentioned that the whole project is led by Alan Clarke who formerly worked at Tesla before joining Ford.
The primary reason we could come up with Ford’s wanting to make a super affordable EV like this is GM’s announcement of bringing back Bolt for MY2025 and a sudden influx of cheap Chinese EVs in the USA. Despite the constant threat of tariffs and taxes looming over their head, the Chinese might eventually find a way to capture the world’s largest car market by re-badging their EVs and partnering up with established car manufacturers in the USA like Karma or Polestar
What Could The Upcoming Ford’s 25K EV Will Be Like?
Don’t expect much size-wise it will be a sub-compact, leaning more towards crossover/hatchback than SUV. The current most affordable EV in this niche is the Bolt EV which manages 240-260 miles of range per charge and costs around 26K. Expect Ford to beat or at least match that target due to advancements in battery technology in recent years. Ford will likely use LFP as currently it is the most affordable battery chemistry with prices hovering around $100/Kwh compared to $150/Kwh for Li-ion batteries.
Ford’s yet unnamed EV might also qualify for a Federal Tax Incentive of up to $7,500 provided it manages to satisfy both critical minerals and battery components requirements.
Ford’s move to capture still in its infancy sub-compact EV segment seems to be a step in the right direction as more and more people are looking to make the inevitable switch towards electron-sipping cars while not wanting to shell out a huge chunk of their savings. The current players in this segment are the ubiquitous Chevrolet Bolt and Nissan Leaf.
The former can be had for as low as $19,000 after tax rebate and the latter still suffers from poor range. Both have been on sale for a long time and a fresh perspective in the sub $30K segment could prove a win-win for both consumers and manufacturers.
When Will Ford’s Most Affordable EV Arrive?
Ford has decided to halt its 3-row EV SUV and focus all its efforts on bringing its Tesla Model 2 killer by 2026.
