Ford CEO Jim Farley said there was a clear reason he chose to drive a Xiaomi SU7 instead of a Tesla while assessing competition in the electric vehicle market. In an interview on “Rapid Response,” Farley said the decision was tied to how he sees the current challenge from China, where he believes the strongest pressure comes from companies that have built cost advantages and manufacturing discipline.
Farley said Tesla remains an important EV player, but he argued that it is not the central benchmark for understanding China’s car industry. He told host Bob Safian that Chinese brands, including BYD, are “the best in the business” when it comes to cost, supply chain strength, and manufacturing expertise.
Why Xiaomi stood out
Farley’s comments point to a broader strategy concern for Ford, not just a product comparison. He said that if Ford wants to compete effectively, it needs to study the cost competitiveness of Chinese automakers and apply that lesson in market segments it knows well.
He also linked that thinking to customer demand in the U.S. market. Farley said the next wave of EV buyers wants pickups and utility vehicles, but at a lower price point than earlier electric models offered.
“[They want it] at $30,000, not $50,000 like the first inning,” he said, adding that affordability is now a major factor in electric vehicle adoption.
A Chinese EV that left an impression
Farley has spoken positively about the Xiaomi SU7 before. In a podcast interview in 2024, he said he had been driving the vehicle for six months and did not want to give it up.
That experience appears to have reinforced his view of Chinese automakers as serious rivals. He has repeatedly said China’s progress in autos should be both feared and respected, reflecting a view that the competitive threat is real and growing.
Ford’s own shift toward lower-priced vehicles
Farley’s remarks come as Ford has been reshaping its EV approach. The company has moved away from producing the F-150 Lightning only as a fully electric pickup and has turned more attention toward smaller, more affordable, and hybrid vehicles.
Ford said in December that this shift would cost the company about $19.5 billion. The move suggests the automaker sees demand moving toward vehicles with lower starting prices and more flexible powertrain options.
That pressure is visible in Ford’s lineup. The company’s cheapest hybrid is the Maverick XL pickup, which starts at around $28,000. Tesla’s least expensive model is the Model 3, which starts at $36,990.
Farley’s choice to drive a Xiaomi rather than a Tesla therefore says less about brand preference and more about where he believes the next competitive battle is taking place. The focus, based on his comments, is on affordability, manufacturing quality, and how quickly automakers can respond to a market that is changing fast.
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