Ford Motor Co. is aggressively pursuing cost reductions in its electric vehicle lineup by adopting technologies reminiscent of Tesla Inc.’s playbook, but this strategy introduces potential risks to battery performance and longevity that could undermine consumer trust and long-term viability.

The automaker recently announced plans to integrate lower-cost battery chemistries and streamlined manufacturing processes, drawing inspiration from Tesla’s efficient production methods. According to a report from The New York Times, Ford aims to use new materials and innovative assembly techniques to slash expenses, potentially bringing EV prices down to compete more directly with market leaders.

Navigating the High-Stakes Shift to Affordable EVs

This move comes amid mounting losses in Ford’s EV division, where the company has reported billions in red ink from its battery-powered models. Industry insiders note that Ford’s decision to follow Tesla’s lead on price cuts, as detailed in a New York Times article from 2023, reflects a broader effort to stimulate demand in a softening market.

However, the adoption of Tesla-style tech isn’t without pitfalls, particularly in battery sourcing and design. Ford has turned to cheaper lithium-iron-phosphate (LFP) batteries from suppliers like China’s CATL, which promise cost savings but may compromise on energy density and range compared to traditional nickel-based cells.

Weighing Battery Risks Against Cost Imperatives

A Reuters exclusive highlighted Ford’s alliance with CATL to import these budget-friendly batteries for its North American EVs, a tactic echoing Tesla’s vertical integration but reliant on foreign partnerships that introduce supply-chain vulnerabilities.

Experts warn that while LFP batteries reduce costs and enhance safety by minimizing fire risks, they could lead to shorter driving ranges and faster degradation in extreme climates, potentially alienating buyers in key markets like the U.S. where range anxiety remains a barrier.

Ford’s Broader Electrification Challenges

Compounding these concerns, Ford has scaled back ambitious projects, including a next-generation electrical architecture intended to rival Tesla’s, as revealed in a Reuters report from April 2025. This cancellation underscores internal debates over balancing innovation with financial prudence.

The company’s EV unit, Model e, continues to hemorrhage money, with losses exceeding $100,000 per vehicle sold in recent quarters, per insights from Teslarati. In response, Ford has reduced battery orders and postponed investments, signaling a cautious pivot.

Strategic Implications for Legacy Automakers

Looking ahead, Ford’s leadership, including CEO Jim Farley, has expressed worries about price wars initiated by Tesla and Chinese competitors, as noted in a Reuters piece. The push for affordability through Tesla-like efficiencies could reshape Ford’s competitive positioning, but only if battery risks are mitigated through rigorous testing and transparent communication.

Ultimately, this cost-slashing approach highlights the precarious path legacy automakers must tread to catch up in the EV race, where technological shortcuts might yield short-term gains but invite long-term reliability questions that could define the industry’s future trajectory.