Ford Adopts Tesla's 48-Volt System for Next-Gen EVs to Cut Costs

The $5 billion investment aims to lower production costs and compete with Tesla and Chinese EV makers.

Published on Feb. 21, 2026

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Ford Motor is making a substantial $5 billion investment in its next generation of all-electric vehicles, incorporating a 48-volt electrical architecture first commercialized by Tesla. The move signals a significant shift in Ford's EV strategy as it aims to lower production costs and compete more effectively with both Tesla and emerging Chinese EV manufacturers.

Why it matters

The adoption of the 48-volt system, which improves efficiency and reduces weight, is a critical step for Ford as it seeks to achieve price parity with gasoline-powered vehicles and drive mass EV adoption. This investment represents Ford's effort to stay competitive in the rapidly evolving EV landscape against established players like Tesla and the growing presence of Chinese automakers.

The details

Ford plans to debut the 48-volt system in a small electric pickup truck priced around $30,000 in 2027, the first model on the company's new 'Universal Electric Vehicle' (UEV) platform. The UEV platform is designed to significantly reduce production costs, with 20% fewer parts, 25% fewer fasteners, 40% fewer workstations, and a 15% faster assembly time. Ford is also implementing 'gigacastings,' a manufacturing process popularized by Tesla, to further streamline production and reduce weight.

  • Ford announced the $5 billion investment and 48-volt system plans on Tuesday.
  • The small electric pickup truck featuring the 48-volt system is slated for production in 2027.

The players

Ford Motor

An American multinational automaker that is making a substantial investment in its next generation of all-electric vehicles.

Tesla

An American electric vehicle and clean energy company that first commercialized the 48-volt electrical architecture that Ford is now adopting.

Jim Farley

The CEO of Ford Motor, who has described the company's new 'Universal Electric Vehicle' platform as a 'Model T moment' for the company.

Alan Clarke

Ford's executive director of advanced EV development, who acknowledged receiving a letter from Tesla CEO Elon Musk outlining the 48-volt technology.

Elon Musk

The CEO of Tesla, whose company's pioneering work with the Cybertruck effectively provided competitors like Ford with a blueprint for developing a 48-volt system.

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What they’re saying

“Now is time to change the game once again.”

— Jim Farley, CEO, Ford Motor (newsdirectory3.com)

“Certainly added fuel to the fire and served as a helpful starting point.”

— Alan Clarke, Executive Director of Advanced EV Development, Ford (newsdirectory3.com)

What’s next

Ford plans to debut the small electric pickup truck featuring the 48-volt system in 2027.

The takeaway

Ford's adoption of Tesla's 48-volt system and its investment in the 'Universal Electric Vehicle' platform represent a critical shift in the automaker's EV strategy, as it aims to lower production costs, achieve price parity with gasoline-powered vehicles, and compete more effectively with established players like Tesla and emerging Chinese EV manufacturers.