Ford CEO didn’t hesitate on the Tesla deal: ‘It’s good for customers’

CNBC’s Jim Cramer sat down with Ford CEO Jim Farley on Tuesday to discuss the company’s earnings, future, electric vehicles, deal with Tesla and more at Ford’s headquarters in Dearborn, Michigan.

Farley said his team didn’t really hesitate when it came to Ford’s partnership with Tesla because they liked the reliability and locations of the company’s charging network. Under the agreement between the two rival companies, Ford electric vehicles drivers will be allowed access to over 12,000 Tesla Superchargers across the U.S. and Canada sometime in 2024.

“I have no problem being opportunistic when it comes to advantaging my customers,” Farley said. “Our team didn’t really hesitate because it’s good for customers.” He added that even though his company’s charging network was extensive before the Tesla deal, the additional stations will be a boon for Ford drivers.

During negotiations, Farley said Tesla CEO Elon Musk was respectful, but “more because of Henry Ford than Jim Farley.” Farley added he isn’t worried that Musk’s Cybertruck venture will take his customers away.

“The reality is, America loves an underdog — and we are the market leader for EV trucks and vans, and we know those customers better than anyone,” Farley said. ‘”And if he wants to design a cyber truck for Silicon Valley people, fine.”

“It’s like a cool high-end product parked in front of a hotel,” Farley continued. “But I don’t make trucks like that. I make trucks for real people who do real work, and that’s a different kind of truck.”

The company split off its EV undertaking from the rest of its vehicles, and Ford now has three main sectors: Ford Blue for its conventional vehicles, Ford Model e for its EVs, and Ford Pro for its commercial vehicles. Farley said Ford is the dominant player globally in commercial vehicles, but 90% of its Pro business comes from small or medium-sized contractors like plumbers, electricians and emergency responders.

But even though its EV revenue was down this quarter, Farley expects to see a positive margin of 8% by the end of 2026. Ford’s latest earnings report saw revenue hit $41.5 billion, well above the $39.25 billion consensus estimates.

Farley also noted that the company is determined to keep the majority of its production in North America, even though Ford may soon be facing tough negotiations with the United Auto Workers union.

“We’ll see what happens, but the reality is we have always been in America at our company,” Farley said. “We believe in American-made BlueOval city in Tennessee or Kentucky-built pick-up truck, EV pick-up truck, people will pay for that American technology.”

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Disclaimer The CNBC Investing Club Charitable Trust holds shares of Ford.