Update: The original version of this story noted that Ford is no longer the second-largest EV manufacturer in the US. Ford, as a brand, remains the second-largest EV producer in the US. Only the larger General Motors company (which includes brands like Cadilac, Chevrolet, and Hummer) produces more EVs. The story has been updated to clarify that. This story has also been updated with additional clarification regarding Ford’s battery production in the US.
Until very recently, the larger Ford Motor Company was the second-biggest electric automaker in the United States. That made it a popular talking point for analysts and enthusiasts alike. What was rarely mentioned, though, was the gap between Ford and Tesla. In 2023, Tesla delivered 1.81 million electric cars to Ford’s 72,608 units by comparison. A gaping chasm that was begging to be filled.
Despite getting off to a slower start than Ford, it didn’t take long for General Motors (which includes all brands—Cadillac, Chevrolet, and Hummer) to overtake its friends in Dearborn in the EV race. In Q3 2024, GM sold 32,095 battery-powered vehicles to Ford’s 23,509, and the Detroit automaker is on a clearer path to growth.
That’s not to say Ford is struggling. The company still sells the popular Mach-E and F-150 Lightning models, with more EVs on the way. But there are reasons to question the brand’s larger potential.
For one, Ford just isn’t as profitable as GM. Full stop. In Q3, GM made an EBIT-adjusted profit of $4.1 billion on $48.8 billion in revenue. Ford’s $46.0 billion revenue was only 6% less, but it made over a third less profit than GM, at just $2.6 billion. Ultimately, that means Ford has less money to spend on new vehicle development, a big problem in a rapidly changing auto industry.
Secondly, Ford’s insistence on getting a headstart has limited scalability. The Dearborn automaker doesn’t produce its own cells or inverters yet; LG makes batteries for the Mach-E, SK On produces them for the F-150 Lightning, and Denso makes many of the automaker's inverters. Many of the vital components of Ford's electric cars are, therefore, not designed or built in-house, which not only leads to implications in terms of expertise but also scale, cost, and efficiency.
That said, Ford is trying to change that. Beginning in mid-2025, Ford's BlueOval SK joint venture with SK On will begin producing their own batteries in Kentucky. Ford and LG Energy Solutions are moving Mach-E battery production from Poland to Michigan. And on top of that, lithium iron phosphate (LFP) battery production will kick off at Ford's BlueOval Battery Park in Michigan beginning in 2026. It will be America’s first automaker-backed LFP battery plant.
GM’s electric platform—formerly known as Ultium—uses the same battery cell and module across its many models, paradoxically making it a very flexible system. At least, for relatively large BEVs (smaller cars, hybrids, and performance vehicles are a different story). GM makes its own cells and inverters. It even plans to mine its own lithium. The company doesn’t have to deal with supplier middlemen and has key cost advantages as a result.
That’s evident when comparing the Mustang Mach-E to the Chevrolet Equinox EV. The base Mach-E starts at $41,990 before destination and can travel 250 miles on a charge. The base Equinox EV is $6,000 less at $35,995 and can travel 69 miles further before needing to stop. The latter vehicle also has a higher peak charge speed.
By the numbers, GM also generally makes cars with fewer defects, while Ford makes cars of comparably lower quality with a stronger following. And this isn’t limited to EVs—the Bronco, Mustang, and Maverick are all widely admired ICE cars that GM has no answer for. That even extends to the F-150 Lightning and the Mustang Mach-E.
Despite this, Ford CEO Jim Farley says the company struggles with quality. He’s right. The brand loses huge amounts of money on warranty costs. In 2023, Ford was the most-recalled American automaker both in terms of the number of cars recalled and the sheer quantity of recalls. That adds up.
Critics—including me—questioned whether GM could deliver the cheap base-model Equinox EV when it said it would, but the company pulled it off with no drama. It seems like GM has turned a corner.
Of course, GM’s electric platform is seeing a shakeup now—likely to accommodate the aforementioned smaller cars, hybrids, and performance vehicles. But it’s unlikely to affect everything that’s already been built.
GM’s scale advantage is just beginning to ramp up, and its portfolio is key. Having several brands allows the company to differentiate similar products. The best example is the Chevy Silverado 1500 and its GMC-branded alternative, the Sierra 1500. They’re the same truck underneath, but together they outsell the F-150 hand-over-fist.
Critics—including me—questioned whether GM could deliver the cheap base-model Equinox EV when it said it would, but the company pulled it off with no drama.
Having multiple badges representing different market segments is even more valuable in the EV era. A classic criticism (still) leveled at GM’s ICE cars is that engines and transmissions intended for Chevrolets end up in Cadillacs, spoiling an otherwise competitive luxury car. Because EVs equipped with permanent-magnet motors (almost all of them) offer identical torque and power curves, a cheap EV feels exactly the same as a more expensive model under acceleration; an ideal phenomenon if you have a luxury brand and a more pedestrian mark in your stable.
As for Lincoln… Even though the Mach-E went on sale in December of 2020, here we are four years later with no electric Lincoln. It’s more than a little befuddling. EVs are more expensive to build (especially for Ford) but feel more refined than ICE cars. Electric drivetrains are a natural fit for higher-margin luxury vehicles, but for some reason, Ford hasn’t pulled the trigger. This is all happening while Cadillac unveils a full lineup of BEVs. The first one out of the gate, the Lyriq, has been well received and is already the brand’s second-best-selling vehicle, just behind the Escalade.
Despite this bad news, Ford still has several cards to play. For one, it’s extremely adept at marketing its products. GM is not. It’s likewise audacious in terms of which segments it chooses to exist in. The Mustang is suddenly the last V-8 ICE muscle car standing and the Maverick is the first affordable compact pickup in ages. People also forget what a slam dunk the Bronco was (and still is). That was a risky product executed with extreme finesse. Much the same can be said about the Mach-E.
What worries me is there hasn’t been much news for Ford on the EV front lately. CEO Jim Farley did put together a Skunkworks team to develop a cheap EV, but the problem is that any small team of talented people can design an appealing prototype for a cheap affordable car. The actual challenge is in the execution at a huge scale, which, as we’ve seen, Ford isn’t in a strong position to achieve. For what it’s worth, Tesla doesn’t seem to be able to do that either, which is a huge red flag.
GM might be the only American automaker positioned to execute on that kind of scale. Its massive corporate marketing mediocrity—and other pain points outside of the vehicles themselves—are the only real things stopping it. Ford would have to get extremely creative to challenge GM on this front, but then again, the company’s agility and scrappy nature could provide just such a spark.
The world of EVs doesn’t look great for Dearborn, but I wouldn’t bet against it, either.
