Ford CEO Jim Farley is steering the legacy automaker toward a new competitive frontier: China's BYD, rather than Tesla. In a recent interview on the Rapid Response podcast, Farley revealed that Ford's strategy hinges on mimicking the innovation and efficiency of Chinese electric vehicle (EV) manufacturers, particularly BYD, which he lauded as 'the best in the business.'
Ford's Focus on BYD
Farley's shift in focus comes after spending six months driving the Xiaomi Speed Ultra 7, an EV from a Chinese tech company primarily known for smartphones. He was so impressed that he stated, 'I don’t want to give it up.' While acknowledging Tesla's accomplishments, Farley emphasized that Tesla's updates are incremental compared to the advancements made by Chinese car companies like BYD.
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.
BYD's Dominance
BYD, founded in 1995 as a battery maker, has rapidly ascended to become the world's largest EV manufacturer by revenue, surpassing Tesla in 2025. Despite tariffs imposed by the U.S. and EU, BYD's low-cost EVs have gained traction in global markets, with European sales tripling in early 2024. Farley attributed BYD's success to its cost efficiency, supply chain management, and manufacturing prowess, all bolstered by substantial Chinese government subsidies.
Farley's vision for Ford involves leveraging American innovation to compete with BYD, particularly targeting the next generation of U.S. car buyers who prioritize affordability. 'Use innovation to compete against the best in the world,' he urged, signaling a strategic pivot that could reshape Ford's approach to the EV market.