CEO Jim Farley told investors in an earnings call on Wednesday that when it comes to EVs, bigger is not always better — and said that the company’s future would depend on its ability to build smaller, cheaper electric vehicles.
“In ICE [Internal Combustion Engine], a business we’ve been in for 120 years, the bigger the vehicle, the higher the margin,” Farley said. “But it’s exactly the opposite for EVs. The larger the vehicle, the bigger the battery, the more pressure on margin because customers will not pay a premium for those larger batteries,” he added.
