Ford expects cars to drop in price by 5%, putting pressure on Tesla

Ford expects Elon Musk ‘s company to feel the blow from the drop in car prices.


The pressure on Tesla is mounting from the big automakers .

Ford expects cars to drop in price by 5% this year as inventory at dealerships is growing.

Ford CEO Jim Farley believes this will put pressure on Tesla and its dominance when it comes to electric cars.

“They’ve had the market to themselves, so they’ve had a huge advantage. (…) Now they are going to see much more pressure, ”he assured in a statement to Bloomberg on Monday.

Ford’s plan

According to Farley, Ford will increase its investment in marketing to promote its traditional internal combustion cars in response to the drop in prices.

Sales of vehicles such as the F series , one of the most popular in the United States , and the Bronco will serve to finance Ford’s ambitious plans, which will invest 50 billion in its electric car division, Bloomberg explains .

“We are going to have to spend more this year and prices will go down. (…) With regard to internal combustion models, we are investing in advertising less than we should”, added the executive director of Ford .

Ford plans to produce about 2 million electric cars annually, while still bearing losses in this division, which are expected to amount to $3 billion.