A fully electric Ford Explorer sports utility vehicle on an assembly line in Cologne, Germany. (Alex Kraus/Bloomberg)
Ford Motor Co.’s cheapest electric vehicle can be had for just shy of $38,000. That’s 22% less than Americans pay for a car on average. Days after the Trump administration scrapped purchase incentives of up to $7,500 for EVs, the company promised lower prices.
“That’s exactly where we have to go,” Bob Holycross, Ford’s chief sustainability, environment and safety officer, said July 15 at the Bloomberg Green summit in Seattle. “If we’re really going to get into that … more significant majority — rather than the early majority — affordability is going to play into that.”
High prices remain one of the largest obstacles to electric vehicle adoption. U.S. drivers spent an average of $59,900 for an EV in April, about $11,000 more than the average transaction price for all U.S. autos, according to Edmunds.com. Analysts drastically reduced EV sales estimates after Congress’ decision to junk federal incentives and a suite of other policy supports.
Bob Holycross, Ford’s chief sustainability, environment and safety officer, at Bloomberg Green in Seattle on July 15. (David Ryder/Bloomberg)
Still, Ford and its rivals have made some progress on window stickers. EV transaction prices have dropped 7.4% since January 2023, without adjusting for inflation. And there are now 19 battery-powered models that can be had for less than the average auto purchase, including Ford’s Mustang Mach-E.
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“When it comes to affordability … we have to compete,” Holycross said, “not just in our industry but on a global scale as well.”
Holycross said the company also plans to expand its hybrid options across its portfolio. Meanwhile, Ford engineers are crunching the numbers on so-called extended-range electric vehicles, which use a small gas engine solely to charge a large battery. Although combustion is involved, the novel drivetrain affords driving distances far larger than the typical range of electric vehicles.
“It becomes part of the suite of technologies we have to give serious consideration,” Holycross said. “What we really need to be talking about is zero-emissions miles traveled,” he added, not just electric range.
