Ford considering Tesla Model S Like Vehicle
Tesla’s introduction of their long-range, all-electric Model S had such a significant impact on auto manufacturers in the U.S. and around the world that Ford is pondering its own move into this segment of the market. In a recent conference call, Ford CEO Mark Fields emphasized his company’s ability to produce similar vehicles, but stopped short of announcing his intention to do so.
The Long-Range, Electric Option
The rise of the electric vehicle has been patchy and uncertain, with many car buyers reluctant to accept the new technology. Tesla Motors changed all that with their Model S car that offers over 200-mile range, great handling and appealing good looks. Not content with the stellar reviews of the vehicle, CEO Elon Musk made a point of ensuring that the car buying public became familiar, not only with the car itself, but the technology, as well. He ensured that charging stations were positioned in high-visibility locations and extended his marketing worldwide. This success forced other vehicle manufacturers to sit up and take notice.
Ford Focus Popularity
Ford’s Focus vehicle has been the most popular car for the past two years, selling over a million of the model worldwide in 2013, a rise of 8 percent over last year. Overseas sales are driving a significant part of the growth, and Ford hopes to capitalize on brand loyalty by offering forward-looking vehicles. The Focus comes in an all-electric version that serves consumers who are tired of being tied to the gas pump and the ever-changing prices. Branching out to a higher-end, Tesla-like vehicle would be a natural for the company.
Tesla Welcomes Competition
With Tesla’s recent inroads into electric vehicle battery production, the company appears to be banking on an increasing future market for electric vehicles. If Ford’s Mark Fields decides to produce its own Tesla-range vehicle, Tesla will continue to benefit, and Elon Musk’s vision will be justified by the marketplace.
Ford Looks Toward the Future
Ford’s recent earnings report had the company’s pre-tax profit at $1.2 billion, significantly below the numbers from one year ago. The net income of $835 million was also below last year’s rate. CEO Field may be looking for new ways to extend the company’s market reach, and the Tesla-like option may be the smartest path to take Ford into a more profitable future.
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