Ford to Launch Affordable EV Line in 2027 Starting at $30,000
Ford will begin rolling out a new family of affordable electric vehicles in 2027, including a midsize pickup truck with a target starting price of $30,000, the company announced Monday. The goal is to match the cost efficiency of Chinese EV makers.
The four-door midsize pickup will be built at Ford’s Louisville, Kentucky plant, where the automaker is investing nearly $2 billion. The investment will retain at least 2,200 jobs at the facility, which currently produces the Escape and Lincoln Corsair.
Competing with Chinese EV Efficiency
Chinese automakers such as BYD have streamlined production and supply chains to sell EVs for a fraction of Western prices. While Chinese EVs have yet to enter the U.S. market, Ford CEO Jim Farley said they set a new benchmark Ford must meet.
Farley acknowledged the risks, noting that past U.S. efforts to build affordable cars have failed. “It is a bet. There is risk,” he told workers at the Louisville plant.
Skunkworks Team Driving Development
Ford’s affordable EVs are being developed by a California-based skunkworks team, led by former Tesla executive Alan Clarke and staffed with talent from Tesla and Rivian. The group operates so independently that Farley said he initially couldn’t access their building.
Currently, EVs in the U.S. sell for an average of $47,000, according to J.D. Power. Many Chinese models sell for $10,000–$25,000.
Rising Competition in Low-Cost EVs
Affordability is a key concern for EV shoppers. Competitors like Slate, backed by Amazon CEO Jeff Bezos, are targeting the mid-$20,000 range for their electric pickup. Tesla, Rivian, and Lucid are also working on lower-priced models, though many remain in the $40,000–$50,000 range.
Scaling Back to Cut Losses
Ford has scaled back its EV expansion plans after heavy financial losses. It canceled an electric three-row SUV and a program for advanced electrical architecture. The new midsize pickup was confirmed last year for a 2027 debut.
In 2024, Ford projected up to $5.5 billion in losses from its EV and software division, after nearly $10 billion in losses between 2023 and 2024. Farley expects the new affordable EV family to be profitable within one year of launch.
Current EV Sales and Market Shifts
Ford currently sells three EVs in the U.S.: the Mustang Mach-E, E-Transit, and F-150 Lightning. Sales dropped 12% in the first half of 2025, while hybrid sales rose 27%. Production of the next-generation F-150 Lightning and E-Transit has been pushed to 2028.
The loss of the $7,500 EV tax credit, weaker emission rules, and reduced charging infrastructure funding are expected to further slow EV demand.
Strategic Focus on Small EVs
Farley believes the U.S. EV market is leaning toward smaller, commuter-focused vehicles. In contrast, rival General Motors has electrified nearly its entire lineup, from the Hummer to the Equinox SUV.
Ford, meanwhile, has converted existing gas-powered models to electric to reach the market faster, delaying the launch of a unified EV platform.
LFP Batteries to Lower Costs
The new affordable EVs will use lithium-iron-phosphate (LFP) batteries built in Marshall, Michigan with technology from China’s CATL. The LFP chemistry has helped lower EV production costs, making competitive pricing possible.
