Ford feeling the heat from electric vehicle upstarts

Ford CEO Jim Farley has flagged electric vehicle manufacturers Tesla and Rivian as being threats to the Blue Oval.

The Ford boss told employees in a company-wide meeting the carmaker can no longer ignore the pressure from Tesla, citing the Model 3’s sales-topping results from Europe and parts of the US.

“Think about the value creation of Tesla right now. And [it has] resources, smart people, the Model 3 is now the best-selling vehicle in Europe. Not electric. Flat out,” Farley said in the meeting, CarScoops reports.

“It was the best-selling vehicle in the UK. Most months, it’s the best-selling vehicle in California. Not just electric, but overall. If we’re going to succeed, we can’t ignore this competition anymore.”

Farley also pointed out Rivian has already begun deliveries of its electric ute, despite being a start-up – beating Ford’s battery-powered F-150 Lightning by around six months.

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Rivian could reach – or potentially exceed – Ford’s valuation when the company makes its public debut on the New York Stock Exchange this week.

A new report from Pitchbook shows Rivian could reach a market capitalisation of US$70.6 billion (AU$95.1bn), based on a US$73 share price. Ford’s market cap is currently US$80 billion (AU$107bn).

It’s not all dark clouds for Ford – the company has invested US$7.5bn (AU$10.1bn) into Rivian, taking a 14.4 per cent ownership of the electric newcomer.