Elon Musk warns Ford of tough margins on new vehicles
TED
It should not be surprising that Elon Musk is lending his support to Ford. The long-established automaker has faced challenges in transitioning to electric vehicles. It revealed massive losses on EVs last week. While critics were quick to jump all over the legacy automaker, Tesla's CEO Elon Musk praised Ford's EV strategy on Twitter.
Ford's Model E Reports Losses Amid Shift to EVs
Ford's first-quarter results for 2023 revealed a loss of $700 million before interest and taxes for their Model E division, which is responsible for the development of electric vehicles. The EBIT margin for Model E was -102.1%, more than twice the -40.4% margin recorded in the fourth quarter of 2022. Ford only delivered 12,000 electric vehicles in the first quarter, resulting in a loss of $58,333 per clean car sold. Ford's Model E business is expected to lose $3 billion before taxes in 2023.
These losses have been attributed to higher costs related to engineering, spending, and inflationary pressures. Ford also reported weak sales volumes due to scheduled downtime at their Cuautitlan assembly plant in Mexico, which aimed to increase the Mach-E capacity to 35 jobs per hour.
Elon Musk Defends Ford's EV Strategy on Twitter
Recently, Tesla was compared to Ford from 100 years ago. When Henry Ford created the assembly line, it revolutionized auto manufacturing and put several car makers out of business. While Musk understood the comparison, he disagreed with ending the competition. Tesla has opened all of its patents to competitors, staying true to its mission: to accelerate the advent of sustainable transport by bringing compelling mass-market electric cars to market as soon as possible.
Responding to a tweet criticizing Ford's negative margins on electric vehicles, Musk acknowledged the challenges of transitioning to new technologies and praised Ford's EV strategy as "smart." He also highlighted the high demand for the electric F-150 Lightning.
This exchange occurred amidst a price war between Tesla and Ford. Tesla has lowered its vehicle prices six times this year, forcing Ford to cut the Mustang Mach-E's price by up to 8% to remain competitive.
Ford's Goals for Model E and Electric Vehicle Fleet
Despite the setbacks, Ford has set ambitious goals for its electric vehicle lineup. The company aims for a global EV production of 600,000 units by the end of 2023 and two million by the end of 2026. By 2030, Ford anticipates that 40 to 50% of its vehicle fleet will be electric, with a pre-tax profit margin of 8% for its Model E division.
Despite Ford's current struggles in transitioning to electric vehicles, the company has ambitious goals for the future, and even Musk believes in its strategy.
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Tesla has finally launched a tow package for the refreshed 2024+ Model 3 in North America. While Tesla offered the tow package in the European and Asia-Pacific markets, this is the first time it has been made available in North America.
Until today, owners have had to use third-party hitch options, which do not support Tesla Tow Mode support or other features and can void your warranty.
Tow Package
The new package includes a high-strength steel tow bar, with the standard 2” receiver and 7-pin connector. As the package enables Tow Mode, the full trailer harness is also part of the installation.
As per Tesla’s specifications, this hitch supports towing up to 2,200 lbs (998kg), which is lower than the Model Y, Model S, and Model X, whose hitch supports up to 3,500 lbs (1,587 kg). You’ll need a 2” hitch and a ball of your choice to get towing with this new receiver, which neatly tucks away underneath a panel that’s accessible via two plastic bolts, similar to the rest of Tesla’s lineup.
The tow package neatly tucks away when not in use.
Not a Tesla App
You can purchase the Model 3 Tow Package for $1,300 USD or $1765 CAD on the Tesla store or through your Tesla app. Installation is included in the price, and the parts are shipped directly to your local Tesla service center, where they’ll be installed. However, delivery can take one to two weeks.
As a note, this package is only compatible with the 2024+ Model 3 RWD and AWD. The Performance model is not compatible, likely due to the larger rear motor's size.
The total package price also includes shipping to your local Tesla Service Center. In addition, Tesla will enable the config changes that will allow you to use Tow Mode. The entire process takes between 2 to 4 hours, depending on the scope of work, as some Model 3s will require additional harness wiring.
It’s nice to see Tesla finally adding this much-missed feature to the North American Model 3, as many customers have had to use third-party solutions up to this point. Now, anyone can tow light loads with the refreshed Model 3 while also keeping their vehicle under warranty and taking advantage of Tow Mode.
Tesla has partnered with XPEL, one of the leading manufacturers of automotive tints, for an OEM-approved window tint. Previously, Tesla did not approve window tints on its vehicles and had even denied warranty claims for window issues if the windows were tinted.
Over the past year, Tesla Service has stopped denying warranty claims for cracked windows caused by excessive motor force, factory misalignments, or other minor issues — even when window tints are applied.
XPEL / Tesla Partnership
With this partnership, Tesla owners can find window tints directly through the Tesla app, just like they’d find any other Tesla accessory. The difference is that the purchase is completed on XPEL’s website instead of through the Tesla app.
Tesla is essentially promoting the service and presumably making it an approved product. However, the Tesla owner also benefits from having a better warranty instead of just going through XPEL directly.
XPEL offers two official tints for all Tesla vehicles, including the Cybertruck - its Prime XR+ and Prime XR lines. The best part is that XPEL and Tesla’s combined warranty covers the cost of reinstallation if the glass is damaged under Tesla’s vehicle warranty, which means you won’t have to pay anything additional to get your tint replaced.
You can check out the official specifications of the two tint options below.
Prime XR +
Prime XR
Infrared Heat Rejection
Up to 96%
Up to 85%
UV Protection
Blocks 99% of Harmful UV Rays
Blocks 99% of Harmful UV Rays
Glare Reduction
Up to 95% Glare Reduction
Up to 95% Glare Reduction
Technology
Dual-Layer Nano Ceramic
Single-Layer Nano Ceramic
Vehicle tints, like the ones XPEL offers, have numerous advantages. They reduce cabin heat, block UV rays, minimize glare from external light sources, and increase privacy.
The order is placed through XPEL’s website, and then you will be referred to your local installer. They will conduct the installation, and then you’re set and ready to go - no payment is needed from the installer. The process takes between 1-2 business days, including time for the tint to fully set on the glass. This reduces the chance of the window tint peeling prematurely from your frameless window, which automatically lowers and raises when you open and close the door.
For now, this service is only available in the United States, and you can get referred to an XPEL official installer through the button on XPEL’s Partner website here. You can select the shade/tint percentage of your window film on the installation date.
Of note, windshield tinting is not available through the partnership program, but XPEL advises that your local installer can provide you with an additional quote on the day of installation.
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