Just a word.
That was all that Ford CEO Jim Farley used to respond to Tesla CEO Elon Musk on Friday.
“Tesla and Ford are the only American automakers that have not failed in 1000 auto starts. Prototypes are easy, production is difficult and having positive cash flow is painful,” said Musk on Thursday.
Farley retweeted Musk on Friday, saying only, “Respect.”
The reaction on Twitter has been quick, with likes, retweets and spicy comments.
Musk, of course, is quietly acknowledging the failures of General Motors and Chrysler, now part of Stellantis. Staying afloat during the Great Recession a decade ago has always been a source of pride for Ford.
Elon Musk has 48.5 million followers on Twitter.
Jim Farley, who took over as CEO on October 1, now has 27,200.
Farley succeeds CEO Jim Hackett, who retired from Steelcase’s office furniture and was not on Twitter during his three-year term.
“Today’s tweet demonstrates that business can be competitive and respectful,” said Melissa Bradley, professor of business at Georgetown University.
Musk, 49, is a billionaire who grew up in South Africa and now launches rockets into space. Farley, 58, is a race driver, son of the auto industry, whose grandfather worked in a Ford factory.
The two executives were in the spotlight this week when the all-electric Ford Mustang Mach-E 2021 started stealing customers from the dominant all-electric automaker, as featured by Morgan Stanley analyst Adam Jonas.
Tesla, founded in 2003, dominated the electric vehicle market with its Model S, Model 3, Model X and Model Y. Enthusiasts refer to the product line as SEXY. In 2020, Tesla delivered 499,550 vehicles.
In February, Ford sold 3,739 Mach-E SUVs in its first full month of sales, which attracted Wall Street’s attention. Ford sold 3,977 Mach-Es in 2021, according to its sales reports.
‘There’
Jonas released his analysis to Morgan Stanley investors on Tuesday and to the media on Wednesday, saying, “Mustang Mach-E steals important Tesla sales” and “Tesla’s share of the BEV (battery electric vehicles) market ) fell significantly to 69% against 81% the previous year. The Ford Mustang Mach-E was responsible for almost 100% of the loss of shares. “
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Michelle Krebs, executive analyst at Autotrader.com, said Musk’s tweet shows that Ford is the priority. Purchasing data shows that Ford is cutting Tesla’s profits immediately, she said.
“The Mustang Mach-E is attracting interest from Tesla buyers,” said Krebs. “We need to recognize that Tesla is going to lose market share. It had 100% and cannot stay at 100% as competitors reach the market. In February, Ford was its biggest competitor.”
“If you look at Ford’s sales figures, if they continue at that pace, they will be the best-selling non-Tesla electric vehicle this quarter,” she said. “Chevy Bolt has always been like that. We are waiting for these sales figures.”
Contact Phoebe Wall Howard: 313-222-6512 or [email protected].
This article originally appeared in the Detroit Free Press: Elon Musk tweets about Ford and Tesla, and Jim Farley responds