Tesla’s sales down 40% in EU while Chinese EV maker BYD is up 200% — vindicating Ford CEO’s bold statement in June

And the stakes couldn’t be higher. As Farley bluntly put it: “We are in a global competition with China, and it’s not just EVs. And if we lose this, we do not have a future.”

While Tesla, Ford, and GM’s electric vehicles typically start in the $40,000 to $60,000 range, Chinese manufacturers like BYD are producing models like the Seagull for under $10,000.

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Chinese EVs aren’t just cheaper — they’re often better equipped, with Chinese vehicles offering seamless tech integration.

“They have far superior in-vehicle technology. Huawei and Xiaomi are in every car,” Farley said. “You get in, you don’t have to pair your phone. Automatically, your whole digital life is mirrored in the car.”

US automakers are trying to catch up. Ford is developing a next-generation, affordable EV platform designed to match China’s costs, but it won’t be available until 2027 — practically a lifetime in tech years.

Tesla is also aiming to launch a $25,000 “Model 2,” but the timeline for that project remains uncertain. Until then, a major price gap persists.

US car buyers are unlikely to see new EVs priced under $20,000 on the market in the immediate future — but pressure is mounting.

The US government has imposed steep tariffs on Chinese electric vehicles, which may shield domestic automakers in the short term. But the policy also risks stymying innovation and frustrating consumers in the long term, should those low-cost alternatives fail to materialize.

If you’re in the market for an EV but don’t want to empty your retirement account to afford one, here are some tips to consider:

Look out for EV incentives that can help offset the cost of US-made electric cars.

Compare dealer financing offers, including no money down or 0% APR.

Consider used EVs to save money.

Opt for an EV with a lower range to help reduce the sticker price.

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This article provides information only and should not be construed as advice. It is provided without warranty of any kind.