“Ford's chief executive says he expects the cost of building electric vehicles to fall to the point that in coming years automakers will be battling each other for sales of EVs priced around $25,000. It currently costs much more to build an EV than it does one powered by a gas engine. The company's Mustang Mach-E electric SUV, with a starting price around $44,000 but can run much higher, costs about $25,000 more than a comparable Ford Edge gas SUV.”
The battery costs Ford $18,000.
Unsustainable, unless salary expense is reduced tremendously.
“A price war already is happening in China, where more than half the electric vehicles in the world are sold today, Farley said. The most popular one is a van made by Chinese manufacturer Wuling that costs about $8,000, he said.
Farley conceded that getting to the lower price point will be challenging, with many things to work on at once.
Michelle Krebs, executive analyst with Cox Automotive, said Ford has a long way to go to reach the cost reductions that Farley outlined.”