Ford GM Not Ruling Out Battery-Electric Replacement For Fiesta — Will It Be Up Against This Tesla Model?

Ford Motor Co.‘s F Europe passenger vehicle General Manager Martin Sander said in an interview earlier this week that it is not ruling out building a battery-electric replacement for its Fiesta.

What Happened: “Nothing has been decided, but I don’t want to rule that out,” Sanders said in an interview with Automotive News Europe.

Ford ended production of Ford Fiesta on July 7 with the last of it rolling off the production line in Cologne, Germany. Fiesta was a gas-powered affordable and compact car. Since 1976, over 22 million Fiesta cars have been produced.

If indeed an electric version of it were to be rolled out, it will likely be up against Tesla Inc.‘s TSLA rumored Model 2 economy EV priced below $30,000. However, both vehicles have been conceived only as ideas and are yet to be unveiled. Currently, the Model 3 is the cheapest of Tesla’s vehicle offerings.

Ford’s EV Dreams: Ford announced the stop in production of the Fiesta last year as part of its transition to EVs. In May, it was reported that Ford is targeting a two million EV production run rate by 2026, up from an expected 600,000 in 2023.

However, in the first quarter, the Ford Model E segment, which develops electric vehicles, saw revenue drop 27% to $700 million. Further, the segment is expected to report a loss this year.

However, despite the not-so-positive numbers, Elon Musk commended Ford’s EV strategy earlier this year and termed it “smart.”

"Always tough with margins for new vehicle lines, especially when there are major technology shifts," Musk said. "Ford's F-150 Lightning electric truck has high demand."

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