Ford’s CEO, Jim Farley, has stated that Tesla’s approach to reducing costs in electric car development and manufacturing has provided Ford with a significant advantage.

During the three months ending in September, Ford’s electric division, known as Model E, incurred a loss of $1.3 billion (£1.07bn). This was attributed to the challenging market conditions for their Ford Mustang Mach-E SUV and investments in new electric vehicle (EV) projects.

However, Ford plans to overcome these losses with its upcoming second generation of EVs, slated for release starting in 2025. This lineup will include a new electric pick-up truck and a seven-seat SUV.

In the EV industry, simply having a great product is no longer sufficient to succeed.