Ford has been working relentlessly to challenge Tesla for the title of the world’s leading electric vehicle (EV) maker. While China’s BYD is currently Tesla’s most formidable rival, Ford is leveraging its expertise in vehicle manufacturing to catch up quickly.

Ford has already introduced electric versions of its iconic models like the Mustang Mach-E and the F-150 Lightning. The company has also restructured to adopt a startup mindset, focusing on agility and rapid innovation.

However, Tesla and its CEO Elon Musk have managed to turn the tables, putting Ford on the defensive. Tesla has slashed its prices six times this year, significantly undercutting Ford’s offerings. For instance, the Tesla Model Y now costs around $3,000 less than the Ford Mustang Mach-E, even after federal tax credits.

In addition to its competitive pricing, Tesla also benefits from its vast network of charging stations, making its EVs even more attractive to buyers. Ford now faces the difficult decision of whether to lower its prices to match Tesla’s, potentially reducing its already slim profit margins in the EV market.

Ford CEO Jim Farley has acknowledged the ongoing price war and even compared Musk’s strategy to that of Henry Ford’s when he halved the price of the Model T to protect its market share. However, Farley noted that this tactic didn’t work out in the end, as Chevrolet eventually took the lead.

Tesla’s price-cutting strategy could force legacy automakers like Ford to reconsider the magnitude and timing of their investments in EVs. Ford’s F-150 Lightning currently has no direct competitor from Tesla, but this advantage may be short-lived with the anticipated arrival of Tesla’s Cybertruck later this year.

As the EV market continues to evolve, Ford must find innovative ways to compete with Tesla’s aggressive pricing and extensive charging network while also maintaining its profitability and commitment to electrification.