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Ford won't chase six-figure EV prices, banks on commercial vehicles

Newly minted CEO Jim Farley spoke about Ford's strategy to hit the EV market with affordable vehicles, not six-figure models.

The Mach-E isn't crazy expensive, but it's also not exactly cheap, either.

Ford

Electric cars simply aren't at a price parity with traditional vehicles that sport an internal-combustion engine. While it's still not clear when we'll see a true parity (analysts expect it sometime later this decade) Ford promised its upcoming electric vehicles won't flirt with stratospheric prices.

CEO Jim Farley's remarks during an investors call directly foreshadowed what we should expect from the automaker in the yearst o come. The strategy not only relies on affordable EVs for drivers, but also leans heavily on battery-powered commercial vehicles. On the private ownership side of things, he ruled out sky-high price tags. "We are not going after the $100,000-plus market. These are affordable vehicles," the CEO said on the call.

With a wide range of price points, Farley added the automaker expects future EVs to account for over 10% of the company's revenue in the future. Ford's been far more restrained with its electrification strategy as rivals, like General Motors, trumpet an all-electric future day in and out. But, make no mistake, the EVs are coming from Ford as well.

The Ford Mustang Mach-E kicks things off this year, while the F-150 EV is set for a debut in 2022. We'll see the all-electric Transit commercial van bow next week, and Farley underscored a full lineup of electric commercial vehicles is a big part of the automaker's EV bet.

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Update, Nov. 3: Ford clarified CEO Jim Farley's comments do not explicitly mention a $20,000 EV like the source reporting originally stated. The article has been updated to reflect this.