Ford, Toyota, and Honda to Navigate Electric Vehicle Landscape Following Elon Musk's Tesla

Feb 05, 2024 08:06 PM EST

VEHICLE PARKED INSIDE ELEVATED PARKING LOT — (Photo : PEXELS/PIXABAY)

Elon Musk insists that Tesla is an artificial-intelligence and robotics company. The problem he has learned this past week is investors apparently view Tesla as a car company. And a wide-open market to Tesla is increasingly competitive.

Car Manufacturers Boost their Profits

This week's reports come from Toyota (TM) and Ford Motor (F) on Tuesday and Honda (HMC) on Friday. In between is ride-sharing company Uber Technologies (UBER)which relies on the web, telephony and, increasingly, AI, to expand its business.

The auto earnings reports will appear this week and the next two. They've had to deal with higher costs (thanks to a UAW strike this past summer), supply-chain issues of just getting parts, and frustration that prices and operating costs are problematic to would-be new buyers.

In short, the question is if the EV market followed the classic pattern of many companies starting up and struggling to stay alive. Toyota is in a position to be snarky. Its US shares are up 10.5% this year to Tesla's 24.4% decline.

Toyota Chairman Akio Toyoda has been skeptical EVs will be adopted as fast as Musk and others insist. Maybe in developed countries, he concedes, but not in countries with the charging infrastructure is not in place, he said recently.

Ford Unveils an Adaptable Leasing Program Tailored for Uber Drivers

According to a report from last year, Uber is making a move towards electric vehicles, and it has teamed up with Ford to facilitate this transition for its drivers. In a pilot initiative available in specific California cities, Ford is introducing flexible electric vehicle leasing options for Uber drivers interested in adopting a more environmentally friendly approach.

Under the Ford Drive program, Uber drivers in San Diego, San Francisco, and Los Angeles can lease the Ford Mustang Mach-E. The lease terms vary, with options of one or four months depending on the driver's location. Local Ford dealerships manage the service aspect of the program. After placing an order, the Mach-E is delivered within two weeks, and drivers can conveniently handle their lease payments and service schedules using the Ford Drive app.

This is noteworthy since it's the first time an automaker and a ridesharing service have worked together in this capacity. Both Uber and its primary competitor, Lyft, have declared their intentions to have all their drivers using electric vehicles by 2030. Uber has committed to investing S800 million to encourage its drivers to make the transition, offering an additional per ride for those who choose electric vehicles. Furthermore, Mach-E lessees gain access to Uber's premium zero-emission ride options.

This partnership adds another achievement to Ford's electric vehicle efforts, following its recent agreement with Tesla to provide access to the Supercharger network for Ford owners.

Ford has partnered with rideshare company Lyft as part of its electric vehicle efforts, following a previous agreement with Tesla. Even while the service is only available in California at first, it might open the door for similar agreements between other automakers and ridesharing services. There is a large waiting list for the F-150 Lightning, despite the popularity of the Mustang Mach-E.