Saturday, July 5, 2025

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Ford To Restructure EV Dealership Model To Match Tesla Profit Margins

Ford (NYSE: F) intends to restructure the way it sells its electric vehicles (EVs), and will in the future include an e-commerce platform where customers can buy their EVs at standard prices. 

CEO Jim Farley, who was at the Bernstein Strategic Decisions Conference on Wednesday, shared that this idea was inspired by Tesla’s sales model. “I feel like when that second quarter last year profit came out for Tesla and they showed like a $15,000 premium, it totally changed my world,” he said. “It was an epiphany. It was like the angels sung, it was like, ‘Oh my god, we can make more money on EVs than our ICE.’”

Unlike the traditional car sales model that rely mostly on franchised dealerships, Tesla’s model is based on direct sales and service. The EV maker operates an international network of company-owned retail stores and showrooms, and customers deal directly and only with Tesla-employed sales and service staff, effectively cutting middleman costs and retaining all profits.

The CEO discussed the matter as more of a vision than a definitive plan, and he did not share a timeline for the restructuring or how far they would go into it but said that Ford is working with its dealers to transition into the future.

Earlier in the week, Ford announced that it will invest $3.7 billion and add more than 6,200 new union manufacturing jobs in Michigan, Ohio, and Missouri. These new jobs are expected to create about 74,000 indirect new jobs in America by the end of 2026.


Information for this briefing was found via the Ford, Twitter and the sources mentioned. The author has no securities or affiliations related to the organizations discussed. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.

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