For years, Ford held the title as America’s second-largest electric automaker, but 2024 has proven that the EV market is no place for complacency. Despite an early lead, Ford has been surpassed by General Motors in the EV race, highlighting a stark contrast between the companies’ approaches and long-term potential. Tesla, the undeniable front-runner, delivered 1.81 million EVs in 2023 compared to Ford’s 72,608—a glaring gap. Now, with GM outpacing Ford in Q3 EV sales by nearly 9,000 units, Ford’s hold on the EV market is looking increasingly fragile.
A Profit Problem
One critical issue is profitability. In Q3, GM posted a robust $4.1 billion EBIT-adjusted profit on $48.8 billion in revenue. Ford’s revenue was nearly as high at $46 billion, yet its profit lagged significantly at $2.6 billion. In the rapidly evolving EV landscape, profitability isn’t just a win; it’s an advantage that allows for reinvestment in technology, manufacturing, and talent.
Scalability Stumbling Blocks
Ford’s initial push into the EV market relied heavily on partnerships with suppliers like LG and Denso for battery cells and inverters, a strategy that, while efficient early on, has become a barrier to scalability. By contrast, GM’s Ultium platform is a modular battery system allowing it to build a variety of EVs using the same core technology. GM’s ability to produce its own battery cells and components, and even plans to source lithium independently, give it a clear cost advantage and control over its EV supply chain.
The difference is evident in the products: Ford’s Mustang Mach-E starts at $41,990 with a range of 250 miles, while GM’s Chevrolet Equinox EV undercuts it at $35,995 with a 319-mile range. The Equinox also boasts faster peak charging—a clear sign of GM’s more integrated and scalable approach.
Quality Control and Warranty Woes
Ford has struggled with quality issues across the board. In 2023, it led American automakers in recalls, contributing to steep warranty costs. CEO Jim Farley has openly acknowledged these quality challenges, and the numbers back him up: Ford’s higher recall rates aren’t limited to EVs. Models like the Bronco, Mustang, and Maverick may be fan favorites, but their reliability hasn’t always matched their popularity.
GM’s Diverse Lineup and Brand Strategy
GM’s multi-brand approach provides a unique edge. Vehicles like the Chevrolet Silverado and GMC Sierra share a platform but cater to different market segments, a strategy that has paid off in sales. GM’s approach allows it to address various customer bases without cannibalizing its own products. This versatility is even more valuable in the EV space, where a common criticism of traditional GM models—overlap of components across brands—is less relevant. With identical torque and power characteristics in EVs, GM can create a cohesive lineup where Chevys and Cadillacs offer differentiated luxury without compromising performance.
Ford’s luxury arm, Lincoln, is lagging far behind in the EV market. While Cadillac has embraced the shift with models like the well-received Lyriq, Lincoln has yet to debut a single electric vehicle. This oversight is puzzling, as EVs naturally lend themselves to luxury markets, where their quiet operation and smooth power delivery offer premium driving experiences.
Ford’s Strengths and Challenges Ahead
Despite these challenges, Ford isn’t out of the race. The brand has a knack for high-impact launches and clever positioning. The Mustang remains the last V-8 muscle car standing, the Maverick has rekindled interest in compact pickups, and the Bronco was a bold re-entry that struck a chord with consumers. Ford’s daring streak is evident in its portfolio, from the F-150 Lightning to the Mustang Mach-E, and these successes reveal a creative spirit that resonates with buyers.
Still, Ford’s EV strategy has room for improvement. Farley’s “Skunkworks” team is reportedly developing a low-cost EV, but prototyping is only part of the challenge. Scaling production for mass-market affordability is where Ford needs to up its game—something GM has already demonstrated it can do with the Equinox EV.
The Bottom Line: Ford’s Potential vs. GM’s Execution
GM may be leading the pack in the American EV market, with the scale, supply chain, and production control to match. But Ford has a history of surprise comebacks and isn’t afraid to take risks. While Ford faces steep competition, the unpredictable nature of innovation in the EV market could still swing in its favor. Ford may not be winning the EV race right now, but its daring approach ensures it’s not out of the running just yet.
