During Ford's Q4 2024 earnings call, CEO Jim Farley explained the economic drawbacks of fully electric large SUVs and trucks. He emphasized that these vehicles struggle in cost-effectiveness due to their heavy weight and large battery requirements, resulting in poor aerodynamics. High prices of models like the Tesla Cybertruck and Chevy Silverado EV highlight the challenges of consumer acceptance and profit margins in this segment. Farley indicated that Ford will pivot towards smaller and medium-sized electric vehicles, where profitability is more attainable, rather than pursuing large EVs that do not provide a strong business case.
Retail customers have shown that they will not pay any premium for these large EVs, making them a really tough business case.
For larger retail, electric utilities, the economics are unresolvable. These customers have very demanding use cases for an electric vehicle.
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