“The near-term pace of EV adoption will be a little slower than expected, which is going to benefit early movers like Ford,” Farley explained. “EV customers are brand loyal and we’re winning lots of them with our high-volume, first-generation products; we’re making smart investments in capabilities and capacity around the world; and, while others are trying to catch up, we have clean-sheet, next-generation products in advanced development that will blow people away.”

Ford has also indicated it will focus on new hybrid vehicles that mix the benefits of electric and gas-powered cars. “You’re going to see a lot more hybrid systems from us,” the CEO said. Ford Blue, the segment that engineers and makes the popular gas and hybrid vehicles, saw strong performance in the quarterly report.

Due to the business unit’s strong pricing power and the appeal of its products, Ford Blue helped fuel growth in wholesale and revenue while contributing $2.3 billion in EBIT. The segment seeks to improve profitability over time through cost efficiencies.

However, the EV market is currently highly competitive with other car manufacturers exercising pricing power. The American Tribune reported earlier this year on Tesla, who has been accused of “weaponizing” price cuts. Other companies, such as Ford, responded by slashing the prices of their own EVs, impacting profitability.