Former Ford CEO Says About Tesla Future: Tesla faces growing hurdles with declining market share, intensifying competition, and political feuds, while Ford and other traditional automakers find opportunity—but not without risk. Former Ford CEO Mark Fields shares his sharp perspective
Former Ford CEO Says About Tesla Future
Tensions are rising between two of the most high-profile figures in America—Tesla CEO Elon Musk and President Donald Trump. What began as a disagreement over policy and influence has reportedly escalated behind closed doors. According to recent reports, President Trump is now considering selling his personal Tesla vehicle, signaling a deeper rift with Musk.
Yesterday Tesla shares surged 4.5% at the start of the week, brushing off a pair of downgrades. Analysts have pointed to escalating tensions between Tesla CEO Elon Musk and U.S. President Donald Trump as a significant concern. However, former Ford CEO and CNBC contributor Mark Fields believes these political squabbles are only part of a much broader array of issues the electric vehicle giant is facing.
According to Fields, Tesla is not on the brink of collapse, but the road ahead is filled with near-term challenges. Chief among them are declining sales, largely driven by the rise of credible competition. Just five years ago, Tesla dominated the EV space with little resistance. Now, the market is flooded with rivals—from established manufacturers to aggressive startups. This increased competition has eaten into Tesla’s market share and compressed its margins.
Another critical challenge lies in China, one of Tesla’s largest markets. Domestic manufacturers are ramping up quickly, applying immense pressure on Tesla’s performance there. Combine that with Musk’s polarizing political entanglements with President Trump, and the company finds itself navigating a volatile external landscape.
Yet, Tesla’s position is far from hopeless. Fields highlights Tesla’s strong cost position and positive margins, which still outperform the broader auto industry. Perhaps more importantly, Tesla is betting big on the future with two ambitious projects: its robotaxi initiative and robotics. If the company’s camera-based autonomous taxi system succeeds, it could provide Tesla a substantial cost advantage over more sensor-heavy competitors like Waymo.
The conversation also shifted toward how other automakers, including the “Big Three,” might benefit from Tesla’s market share decline. Fields noted that Tesla’s share of the EV market has fallen from about 80–85% just three years ago to below 50% today. This does represent an opportunity for competitors. However, Fields warned that broader industry dynamics—like looming tariffs—could complicate things. Tariffs would squeeze margins across the board, and a decline in EV sales could make it harder for companies to meet fuel economy standards. Ironically, these companies may end up purchasing emissions credits from none other than Tesla, indirectly subsidizing the very company they are trying to dethrone.
As for Ford, its stock today is roughly the same as it was 40 years ago—around $10.50—despite decades of ups and downs. Fields acknowledged that Ford and other legacy automakers face an uphill battle when it comes to market perception. While they have poured billions into tech—autonomous driving, electric vehicles, and turning cars into computers on wheels—the market still largely sees them as outdated “metal benders.” Their reputation for poor capital allocation continues to weigh on investor sentiment.
A notable misstep has been the overenthusiastic push into EVs without corresponding customer demand, leading to stranded capital and overbuilt capacity. However, Fields remains optimistic about Ford’s path forward. The automaker has strong brand appeal, particularly in high-margin categories like trucks and SUVs. These segments provide a solid profit foundation, which can fund future investments in electric and autonomous vehicles.
Ford is also quietly innovating behind the scenes. Fields pointed to a “skunkworks” team in California focused on breakthrough products. With a growing emphasis on product appeal and smart allocation of resources, Fields sees a promising future for Ford—so long as it stays focused and avoids the pitfalls of chasing trends too aggressively.