Tesla, Ford Rivalry Takes Backseat As CEOs Compliment Each Other - Tesla (NASDAQ:TSLA), Ford Motor (NYSE:F)

When it comes to selling automotives, particularly electric vehicles, Tesla Inc TSLA and Ford Motor Co. F are fierce rivals.

Both companies paid tribute to each other when it comes to manufacturing accomplishments.

What Happened: Ford recently unveiled its new large-scale bet on advanced manufacturing for electric vehicles, creating a more efficient assembly that will save costs and simplify the process.

The method will be used to create the company's midsize four-door electric pickup truck in 2027, planned for a price point of $30,000.

Teased ahead of the announcement as Ford's "Model T Moment," the manufacturing process is a recreation of its own production lines after becoming one of the pioneers of the automotive manufacturing process more than 100 years ago.

"Ford basically invented mass manufacturing of large, complex products. Everyone else copied," Tesla CEO Elon Musk said recently of Ford's announcement, as reported by Teslarati.

Musk's comment came in reply to Ford CEO Jim Farley highlighting the company's new manufacturing process.

"The Model T didn't change the world on its own. The assembly line made them accessible to everyone. 122 years later, Ford isn't just making another vehicle. We're reinventing how vehicles are assembled," Farley said.

The comment from Musk came after users on social media highlighted Ford pointing to the accomplishments of the Tesla CEO in the EV manufacturing process.

Ford Chief EV, Digital and Design Officer Doug Field said the company's new manufacturing mentality is "the best part is no part," a popular concept often used by Musk in Tesla's designs and manufacturing methods.

Field, who previously worked at Tesla, was likely paying tribute to Musk and his former employer.

Within a week's time, Ford and Tesla executives threw compliments at the other company and acknowledged what each had done for the automotive manufacturing process.

Why It's Important: Tesla has become known for its vertical integration and manufacturing methods that have increased efficiency and helped with margins.

Ford's new EV manufacturing process looks to follow a combination of the old Model T manufacturing process and the newer "unboxed production process" used by Tesla.

While Ford and Tesla are rivals, the company's executives have paid compliments to each other from time to time.

Back in 2024, Farley said there is mutual respect between the executives and companies.

"I think when Elon started, and started scaling Model Y and Model 3, he very much followed the Henry Ford model with the Model T, increasing his utilization of his plant and bringing the cost down for customers as he went mainstream with EVs. I think it's been a largely positive relationship," Farley said.

Farley called Musk "an incredible person" at the time.

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