Small EVs are a big market abroad—a stark contrast to the gigantic offerings like the Ford F-150 Lightning and the plethora of electric SUVs that are prevalent in the U.S. But the small EV market here is growing, and Ford is getting in on the action. The automaker is pivoting to smaller—and cheaper—electric vehicles.
Ford CEO Jim Farley first revealed the pivot on an earnings call in early February. “We made a bet in silence two years ago,” he said, according to MotorTrend, revealing that a skunk works team acting as a startup began working on a low-cost EV back then, in order to better compete with electric vehicles from Chinese automakers.
Now, there are more details on just how affordable those new Ford EVs will be: Bloomberg Businessweek reported this week that the first model will arrive in late 2026, starting around $25,000. (The F-150 Lightning starts at $54,995, while Ford’s electric SUV, the Mustang Mach-E, starts around $43,000.)
Ford is working on its small EVs through a “specialized team” that is based in Irvine, California, Bloomberg reports. That team—made up of fewer than 100 people—is led by Alan Clarke, who was previously at Tesla for 12 years. There, he led the engineering of the Model Y, the company’s top seller; Clarke moved to Ford in 2022.
The compact EVs for Ford will be powered by a “lithium iron phosphate battery, which is about 30% cheaper than traditional lithium-ion batteries,” according to Bloomberg, noting that the company is continuing to explore even cheaper battery tech.
“All of our EV teams are ruthlessly focused on cost and efficiency in our EV products, because the ultimate competition is going to be the affordable Tesla and the Chinese OEMs [original equipment manufacturers],” Farley said on the February analyst call. Tesla is also working on a cheaper EV, which is also expected to go for $25,000. Tesla CEO Elon Musk first mentioned that goal in 2020; now, he’s said that the cheaper model will launch in 2025.
We’re all guilty of it too. Im currently in love with the JDM Alto works, it ticks every current box I need in a daily and a BUNCH of things I want, its reasonably priced and blah blah blah.
Theoretical me would buy one tomorrow if my car chucked a rod through the block or got written off but my 08 Volvo wagon just keeps running and my money is finite.
P2/3 Volvos are one of the best kept secrets in the car world. Dirt cheap but dead reliable. What kind of wagon do you got?
P3 V70 T6
Its a fantastic car, its never failed to start or broken down but its got a lot of those aging luxury euro problems. the check engine light comes on for a day or so a month and disappears again. The thermostat for the climate AC is busted so it only runs at full tilt hot or full. While its nice driving a 300hp heated leather armchair it also weighs 2 tons, drinks premium at about 12L/100km and 90% of the time its me and a gym bag in it alone.
Starting soon I’m going to need to do a lot of driving for work and they compensate at 78c per km. So something that gets 5L/100 will add up fast.
Sounds awesome from across the pond. I wish we had more P3 V70s on the market here.
I’ve got a P2 XC90 V8 and 12L/100Km (19.6mpg in American) makes me jealous haha. I love it regardless and like your V70, feels like a two ton heated leather chair. Only issue with it is the sunroof drain port has developed a bit of a clog in the last month or so and when it fills up, water runs down my A-pillar and puddles up by the driver’s footwell.