A Ford executive took aim at Tesla, calling its self-driving software ‘vaporware,’ as competition between Tesla and the Mustang Mach-E heats up

Mustang Mach E GT Performance Edition 03
Mustang Mach-E GT Performance Edition.

  • A Ford executive took to Twitter to compare Tesla’s Model Y with Ford’s electric car.
  • The Mustang Mach-E will soon have similar self-driving features as Tesla offers for $10,000.
  • The new electric SUV is already starting to cut into Tesla’s sales.
  • See more stories on Insider’s business page.

A Ford executive took to Twitter on Sunday to call Tesla out on its “full self-driving” software, which is currently in beta.

Mike Levine, the automaker’s North America product communications manager, called Tesla’s software vaporware.

“Return those $10K full-self driving deposits,” he wrote on Twitter. “Mach-E customers drive away with a car. Tesla customers drive off with vaporware.”

Levine referenced a recent report from the Associated Press, comparing the Mach-E to Tesla’s Model Y.

The executive was responding to a tweet about dealers tacking on additional fees to the Mustang Mach-E.

“Any Mach-E customer who sees a dealer adding a markup can reach out to me,” Levin wrote. “I’ll help them find another dealer. Good luck reaching out to Tesla to get your FSD.”

Recent data shows that just months after its full release, Ford’s Mustang Mach-E has already begun to cut into Tesla’s sales. In February, Tesla’s share of the US electric-car market fell to 69% from 81% the previous year due to interest in the Mach-E, according to a report from Morgan Stanley.

Ford is also looking to get into autonomous cars. In March, the automaker announced that its new Active Driver Assist program would be available for the Mustang Mach-E later this year for a $600 activation fee.

The software enables hands-free driving and would have level 2 autonomy, similar to Tesla’s current self-driving capabilities.

This is not the first time Tesla’s self-driving software has been criticized

After Tesla’s beta software was released, the US National Highway Traffic Safety Administration said: “No vehicle available for purchase today is capable of driving itself.”

Soon after the software became available, there were several videos on Youtube showing the car missing medians and traffic lights.

Tesla launched the software beta in October and has since offered it as a $10,000 add-on. Tesla plans to release a more advanced version as a subscription offering this summer.

As a luxury car brand, Tesla’s self-driving software is designed to allow cars to park themselves, change lanes, and identify stop signs as well as potential obstructions. The program still requires a licensed operator. Similarly, Tesla’s autopilot system assists drivers by braking and steering for them when enabled.

At least three drivers have died while using Tesla’s Autopilot. The software has also been associated with several accidents. Just last week, a Tesla car that authorities said was using the autopilot feature crashed into a police car in Michigan. It was the second accident believed to be related to the software in Michigan this month.

Tesla’s self-driving plans are a large focus because it could help it compete with Ford’s Mach-E, as the two are set to go head-to-head.

Ford’s electric SUV release has been largely successful. The car was awarded SUV of the year by the North American Car, Truck, and Utility Vehicle of the Year Award in January, and early testers – including other Wall Street analysts – also gave it positive marks. JPMorgan said the vehicle could challenge Tesla inasmuch as Ford has more history and brand recognition.

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Stellantis to delay production of its Ram 1500 Classic pickup trucks due to global chip shortage

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  • Production at Stellantis assembly plants in Michigan and Mexico will be impacted, the statement said.
  • The pandemic caused a disruption in the supply chain of semiconductor chips used in cars and electronics.
  • The computer chips make up around 40% of a new car’s cost, according to a report by Deloitte.
  • See more stories on Insider’s business page.

Stellantis will delay the production of its Ram 1500 Classic pickup trucks due to the global chip shortage.

The company is currently building the trucks but delaying the completing production for a “number of weeks” at the Warren Truck Assembly Plant in Michigan and the Saltillo Truck Assembly Plant in Mexico, a company spokesperson said in a statement to Insider.

The truck will be completed when the chips become available, the statement added.

“We continue working closely with our suppliers to mitigate the manufacturing impacts caused by the various supply chain issues facing our industry,” the statement said.

Earlier in March, Stellantis CEO Carlos Tavares said that problems caused by the chip shortage may not be fully resolved by the second half of 2021, Reuters reported.

Stellantis is the world’s fourth-largest automaker created by the merger of Fiat Chrysler Automobiles and PSA Group.

The pandemic caused a disruption in the supply chain of semiconductor chips used in the manufacturing of cars and electronics. The chips are used in vehicles’ navigation systems, Bluetooth, and collision-detection systems and make up around 40% of a new vehicle’s cost, according to a report by Deloitte.

Due to the global computer chip shortage, a production slowdown in the auto industry surfaced earlier this year as some car companies changed their manufacturing plans while others searched for new suppliers.

On Thursday, Ford said in a statement that it will build F-150 trucks and Edge SUVs in North America without specific parts including some electronic modules that contain semiconductors.

The impact extends to other carmakers such as Volvo that decided to adjust its production plans temporarily for some periods in March while General Motors said it will lengthen its production cuts at three North American plants.

Automakers could lose as much as $61 billion in revenue due to the chip shortage, Bloomberg reported citing estimates from Alix Partners.

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Ford paves the way as the first automaker to allow 86,000 employees to work from home permanently

Ford logo
Ford’s new policy will be introduced in July.

  • Ford has become the first auto company to announce employees can work from home in the long-term.
  • The company will explore flexible arrangements from July, depending on individual responsibilities.
  • A survey showed 95% of employees wanted a hybrid form of working and felt more productive at home.
  • See more stories on Insider’s business page.

Ford has become the first automobile company to shift towards remote working on a permanent basis, according to CNBC, with around 86,000 employees being allowed to work at least partially from home.

The policy is aimed at office workers rather than factory workers, who number around 100,000 and have largely returned to work.

Hybrid work plans and remote working will depend on individual and managerial responsibilities.

“The nature of the work we do really is going to be a guiding element,” chief people and employee experiences officer Kiersten Robinson told CNBC. “If there’s one thing we’ve learned over the last 12 months, it is that a lot of our assumptions around work and what employees need has shifted.”

Ford’s new policy will be introduced in July when most employees are expected to make at least a partial return to the office after more than a year.

“The nature of work drives whether or not you can adopt this model. There are certain jobs that are place-dependent – you need to be in the physical space to do the job,” chairman and chief executive of Ford Land, David Dubensky, told The Washington Post.

“Having the flexibility to choose how you work is pretty powerful,” Dubensky added. “It’s up to the employee to have dialogue and discussion with their people leader to determine what works best.”

Remote work coronavirus
95% of Ford employees wanted a hybrid form of working.

According to a survey conducted at Ford in June 2020, 95% of employees wanted a hybrid form of working and a number of them felt more productive at home.

The move from Ford comes after major companies including Google, Spotify, and Salesforce all announced that they were offering their employees the option to work from home permanently.

A survey conducted in January by the National Association for Business Economics suggested just one in 10 companies expected employees to return to the office after the pandemic.

“These companies are all looking at each other,” associate professor at Michigan State University’s School of Human Resources and Labor Relations, Angela Hall, told The Detroit News. “And especially someone like Ford, who is a large, respected employer – people are going to model that behavior.”

The Washington Post also reported that General Motors and Toyota were looking at flexible options for a return to the office, although they are both yet to announce new policies.

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Ford to recall 2.6 million vehicles in the US to replace Takata airbags

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Ford is recalling around 2.6 million cars in the US starting April 1 to replace driver’s side front Takata airbag inflators that could rupture.

Ford proceeded with the safety recall after the National Highway Traffic Safety Administration in January denied a petition the company filed in 2017 arguing the recall was not warranted.

The company maintained in a statement Friday that it believes the recall was unnecessary because the inflators in this tranche of cars operate differently that those that prompted the world’s largest-ever auto safety recall.

More than 42 million US vehicles by 19 automakers with Takata air bag inflators have been recalled over the past few years due to concerns the inflators could rupture during airbag deployment, spewing potentially deadly metal fragments. Takata inflators have led to more than two dozen deaths and hundreds of injuries worldwide.

The cost of the recall action is estimated to be about $610 million, Ford said in a January regulatory filing to the Securities and Exchange Commission.

Ford did not respond to Insider’s request for further comment.

The company is also recalling 274,737 of the affected vehicles in Canada and 46,078 vehicles in Mexico, according to Ford’s statement. Dealers are expected to replace the driver-side airbag inflator or airbag module.

Car models include the Ford Fusion 2006-2012, Ford Edge 2007-2010, Ford Ranger 2007-2011, Mercury Milan 2006-2011, Lincoln Zephyr/MKZ 2006-2012, and Lincoln MKX 2007-2010.

Separately, Ford is also recalling 15,769 vehicles in the US over faulty tires, 3,082 vehicles in Canada, and 138 in Mexico.

A break may happen on the sidewall of the tire leading to sudden air loss or a belt edge separation which could cause partial or full belt loss and increasing the risk of a crash, Ford said citing a safety report by the Continental Tire of America.

The company said that it is not aware of any accident or injury related to this issue.

The recalled car models include Ford F-250 and F-350 select 2018-2020, F-150 select 2018, and Ford Escape select 2019.

Owners will be notified during the week of March 29 about the fix in which dealers will inspect tires and replace those that match the suspect tire list provided by Continental Tire of America.

Last month, Ford said that it is recalling around 90,000 of its F-Series pickups over faulty windshields. The company said that the windshields “are inadequately bonded to the vehicle body structure,” and that the windshield may not stay in place if a crash occurs, increasing the risk of an injury.

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Tesla is slowly losing its electric vehicle crown as Ford’s Mustang Mach-E cuts into sales

Mustang Mach E GT Performance Edition 03
Mustang Mach-E GT Performance Edition.

  • Tesla’s share of the US electric car market fell from 81% to 69% in February.
  • The Mustang Mach-E was nearly the sole reason for Tesla’s market share losses.
  • Ford’s new electric car has been widely successful, winning awards and Wall Street’s approval.
  • Visit the Business section of Insider for more stories.

Ford’s electric Mustang Mach-E appears to be cutting into Tesla’s comfortable lead in the electric vehicle market right out of the gate. 

While Ford sold only 3,739 of the new SUVs in February, Tesla’s share of the US electric car market fell to 69% in the same month, down from 81% in the prior year, a Morgan Stanley report found. What’s more, the Mustang accounted for nearly all of Tesla’s market share losses, the bank said. 

Despite the new competition – of which Ford is far from the only source – Morgan Stanley’s analysis found Tesla’s US sales are still on the rise, with more car buyers are continuing to look into purchasing an electric vehicle. EV sales in the US climbed 34% in February from the previous year, while traditional internal combustion engine car sales dropped 5.4%.

One-fifth of the Mustang Mach-E’s sold in February were in California, Ford said, a key market for the industry. In 2019, the state accounted for nearly half of Tesla’s Model 3 sales.

So far, the Mach-E appears to be a success. The car was awarded SUV of the year by the North American Car, Truck, and Utility Vehicle of the Year (NACTOY) Award in January, and early testers – including other Wall Street analysts – also gave it positive marks. JPMorgan noted the vehicle could challenge Tesla inasmuch as Ford has more history and brand recognition.

“We do not aim to argue that one vehicle is necessarily superior to the other (many consumers will continue to prefer the Model Y’s greater availability of semi-autonomous driving features and Tesla brand, while others will be attracted to the Mach-E’s styling and availability of a $7,500 federal tax credit),” they said.

On Thursday, Tesla CEO Elon Musk seemed to compliment Ford’s role in the electric car market.

“Tesla & Ford are the only American carmakers not to have gone bankrupt out of 1000’s of car startups,” he said on Twitter in response to a reporter’s post about the high risk nature of the automobile industry. “Prototypes are easy, production is hard & being cash flow positive is excruciating.”

 

Some experts doubt Tesla can stay on top forever

Early Tesla investor and former board member Steve Westly told CNBC that competition was encroaching on the electric car company from all sides.

“Tesla is not going to be king of the hill in electric forever,” he told CNBC on Tuesday.  

Several other car companies have also begun to crowd the market, from electric car startups like Lucid Motors, Fisker, and Rivian to more established car companies like General Motors and Volkswagen.

In February, a J.D. Power survey of new car buyers found that many people looking to buy electric cars were considering companies outside of Tesla.

“One could argue this indicates that, while Tesla’s appeal is clearly formidable, it’s not absolute and could be displaced by a worthy alternative,” said Stewart Stropp, senior director of automotive retail at J.D. Power, said in the survey. 

Despite doubts as to the future of Tesla’s role in the EV market, Tesla’s shares have risen more than 650% in the past year in a vote of confidence from investors. The company’s revenue increased in 2020 from $24.6 billion to $31.5 billion, but it missed Wall Street’s fourth-quarter projections by 20%.

The company is actively working to continue to compete in the market. The carmakers plans to design a $25,000 car and has expanded its manufacturing plants into China, building a Shanghai Gigafactory.

China is likely to remain a key market for Tesla and the industry at large.  In 2020, Tesla doubled its revenue there, in the world’s largest market.

“China is the linchpin of growth for EV market,” Dan Ives, an analyst at Wedbush, told clients Thursday. “We believe China could see eye popping demand into 2021 and 2022 across the board with Tesla’s flagship Giga 3 footprint a major competitive advantage.” 

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Ford CEO says US should boost battery production to avoid a future supply-chain crises

ford factory
The chip shortage has impacted production of Ford’s top-selling F-150 pickup.

  • The US needs to grow its battery production, Ford CEO Jim Farley said at a conference Wednesday.
  • Farley said that’s crucial for avoiding the next global supply-chain crisis. 
  • A worldwide shortage of semiconductor chips has hobbled the recovering auto industry. 
  • Visit the Business section of Insider for more stories.

Ford CEO Jim Farley called on the US government to bring battery production closer to home if it wants to avoid another shortage of critical auto parts. 

“We need to bring large-scale battery production to the US, and we’ll be talking to the government about that,” the Ford boss said during the Wolfe Research Auto Conference on Wednesday, per Bloomberg. “We can’t go through what we’re doing with chips right now in Taiwan. It’s just too important.”

The comments came as a worldwide shortage of semiconductor chips has forced automakers around the globe to cut shifts and halt production at entire plants, slowing down the recovery of an industry that already faced limited production last year due to the pandemic. The chips are needed for a variety of critical vehicle systems, including infotainment screens and engine-control units. 

The impact of the drop in supply is also rippling across the smartphone, PC, and game-console industries

In early February, Ford announced it would temporarily reduce shifts at two plants that build its best-selling model, the lucrative F-150 pickup. During Ford’s fourth-quarter earnings call with investors, CFO John Lawler said the supply-chain disruption could diminish first-quarter 2021 production by up to 20% and cut the company’s 2021 earnings by up to $2.5 billion

Fellow Detroit carmaker General Motors issued a similar prognosis, estimating in its 2021 guidance that the shortage could cut earnings by $1.5 billion to $2 billion. GM said the issue would not affect its electric-vehicle initiatives or production of its most popular, high-margin SUVs and pickups. 

Tesla is stopping production of the Model 3 sedan at its Fremont, California, plant for two weeks, Bloomberg reported Thursday. Some industry watchers have theorized that the chip shortage is to blame for the disruption. 

“We believe this shutdown is more around chip shortages (and not demand driven) which continues to plague GM and other automakers in the near-term, although it appears improvement from a chip perspective is on the horizon for Tesla and others,” Daniel Ives, an analyst at Wedbush Securities, said in a Thursday note. 

Amid pressure from lawmakers and industry leaders, President Joe Biden signed an executive order on Wednesday aimed at reviewing US supply chains of several goods, including batteries and semiconductor chips.

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The Ford Bronco Sport has been hit with another recall mere months after its first deliveries

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Ford Bronco Sport.

  • Ford is recalling 1,666 2021 Bronco Sport models over improperly attached rear suspension parts. 
  • Loose or missing bolts mean that the rear suspension on some vehicles isn’t secured to the frame. 
  • Ford botched the launch of the Explorer in 2019, when thousands of vehicles had to be sent to another factory to be reworked. 
  • Visit the Business section of Insider for more stories.

The rollout of the much-anticipated 2021 Ford Bronco has hit a speed bump.

Ford announced on Thursday it is recalling 1,666 Bronco Sport models over rear-suspension components that may not be properly attached, just months after delivering the first vehicles in late 2020. 

“Affected 2021 Ford Bronco Sport vehicles were produced with rear suspension modules that may not be fully secured to the subframe. Rear suspension modules with loose or missing bolts may affect the vehicle’s stability, increasing risk of an accident, and may result in reduced rear impact crash performance, increasing the risk of injury,” the carmaker said in a press release. 

Ford said the affected vehicles were built at its Hermosillo, Mexico plant between July and November of last year. It’s not aware of the faulty bolts causing any incidents or injuries. 

In January, Ford recalled a small number of Bronco Sports and other models for not having the right amount of lubricant in the rear drive unit, which could cause the rear axle to seize. 

The back-to-back recalls have echoes of the Blue Oval’s notoriously bungled launch of the new Ford Explorer in 2019. Ford had spent roughly $1 billion upgrading a plant in Chicago to build the Explorer, but still thousands of models had to be sent to a factory in Michigan “for rework,” Bloomberg reported in 2019. By the time they reached customers, many Explorers suffered from quality issues. 

However, the recalls are bumps in the road for an otherwise smooth rollout of one of Ford’s most highly anticipated vehicles to date.

The rugged SUV – which sports multiple models, lots of customization options, removable doors and roof panels, and vintage charm – quickly raked in a huge amount of reservations and very well may steal some of the Jeep Wrangler’s thunder in the off-road space. 

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Here are some of the car models most likely to be in shorter supply due to the global chip shortage

Car Dealership
New Chevys for sale fill the lot at Raymond Chevrolet in Antioch, Illinois, July 17, 2014.

  • Car dealerships are already reflecting the slowdown in manufacturing due to the global chip shortage.
  • Shoppers may see higher prices and lower availability of certain car models.
  • Car companies began halting production in January and expect to lose billions this year.
  • Visit the Business section of Insider for more stories.

A global shortage of computer chips has caused shutdowns at several automotive manufacturing plants – and car dealerships are already reflecting the shortage.

Car shoppers can expect to see an impact in the availability of certain car models due to the chip shortage, as well as a price increase, according to Cars.com executive editor Joe Wiesenfelder. Dealerships may also be less likely to offer deals as supplies dwindle.

“Consumers in the market of considering buying a car should shop now because choices and prices could worsen over the next two quarters,” Wiesenfelder told Insider. 

Car companies began halting production at manufacturing plants in North America in the beginning of January.

Automotive companies stand to lose billions of dollars due to the disruption in supply. Alix Partners told Bloomberg car companies could lose over $14 billion in the first quarter and about $61 billion overall in 2021. Though, Wiesenfelder said the industry could make up for the cuts by the end of the year.

Semiconductor chips have become an essential part of the manufacturing process for vehicles. The chips are used in navigation, bluetooth, and collision-detection systems and account for about 40% of a new car’s cost, according to a report from Deloitte.

The lack of chips has forced automakers to prioritize production of their higher-priced and more-profitable models.

Here are some of the models Cars.com said may see price increases or limited availability.

Toyota has already started increasing prices

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Toyota Tundra CrewMax.

The Toyota Tundra was one of the first cars to see a halt in production.

Cars.com said the Tundra has seen a drop in inventory of almost 27% for the month of February. Some Toyota models have already demonstrated price increases, including the Tacoma, which has gone up about $584 or 1.6%, despite only a 4% decrease in inventory, according to Cars.com.

Many Japanese carmakers are seeing an impact. Honda was one of the first car companies to warn of computer chip shortages, according to Bloomberg.

The Japanese carmaker has slashed production at several major manufacturing plants. In particular, shoppers can expect to see some pressure on the Honda Accord, Civic, Insight, and Odyssey, as well as the Acura RDX.

Nissan has had to adjust production in both Japan and North America. A spokesperson told Insider the company is continuing to assess the long-term impact of the chip shortage. For now, the models that have seen slowdowns for the carmaker include the Nissan Altima, Frontier, and Titan.

In February, Subaru reported it planned to cut its production plan for 2021 by about 58,000 cars. The models impacted by the cut include the Subaru Ascent, Impreza, Legacy, and Outback.

Ford and General Motors expect to lose billions of dollars 

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Workers build Ford F-150 trucks at one of the automaker’s assembly plants.

Ford began slowing down production at its plant in Louisville in January. During Ford’s fourth-quarter earnings call, CFO John Lawler said the chip shortage could cut the company’s first-quarter production by 10% to 20% – a $2.5 billion hit to revenue.

The car models that will be impacted by cuts at Ford plants include the Ford Escape and Lincoln Corsair, which are produced at the Louisville plant. Cars.com said there will also be declines in production of the Ford Edge and Explorer, as well as the Lincoln Aviator and Lincoln Nautilus.

During GM’s fourth-quarter earnings call the company said it expects to see a negative impact of $1.5 to $2 billion this year. 

The company announced last week that it was closing three of its North American plants. The manufacturing sites will remain closed until at least mid-March.

The closures are expected to impact the Buick Encore, Cadillac XT4, and GMC Terrain. The company’s Chevrolet line will also see some slowdowns, as the sites that produce Chevrolet Equinox, Malibu, and Trax have been impacted.

Fiat Chrysler and Volkswagen also feel the pinch

Dodge Challenger SRT Hellcat Redeye Widebody
Dodge Challenger SRT Hellcat Redeye Widebody

In January Fiat Chrysler suspended operations at plants in Ontario and Mexico. The slowdowns will impact several Chrysler, Dodge, and Jeep products. Cars.com said dealerships will likely have lower inventories for the Chrysler 300, Pacifica, and Voyager. The Dodge Challenger and Charger may be in shorter supply, as well as the Jeep Cherokee and Compass.

BMW, Mercedes-Benz, and Volkswagen were some of the first car companies overseas to report shortages. In December, Volkswagen had already begun lowering production rates. The Volkswagen Atlas, Atlas Cross Sport, and Passat have already been impacted by the supply disruption.

Toyota, Honda, Subaru, Ford, GM, Fiat Chrysler, and Volkswagen did not respond in time to comment.

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Ford extends 3-day surge to 23% as Rivian’s big capital raise boosts the company’s electric-car prospects

Rivian R1T.
Rivian R1T.

  • Ford soared as much as 12% on Thursday, extending its three-day surge to more than 23%.
  • The move higher materialized as hype over electric vehicles continues to push auto stocks higher.
  • On Wednesday, Rivian, an electric truck start-up that counts Ford as an investor, raised more than $2.65 billion at a valuation of $27.6 billion.
  • Sign up here for our daily newsletter, 10 Things Before the Opening Bell.

Investor hype for electric vehicle manufacturers seems to have spilled over into Ford this week, with the stock surging as much as 23% since Tuesday.

The move higher materialized after Rivian, an electric truck start-up that counts Ford as a minority owner, raised $2.65 billion at a valuation of $27.6 billion on Tuesday. The raise will help Rivian push forward with its production schedule as it aims to begin delivering vehicles by the end of the year.

Ford has an undisclosed stake in Rivian, having invested $500 million in the company in April 2019. Rivian’s $28 billion valuation is catching up to Ford’s, which was hovering at $44 billion as of Thursday.

But Ford also has electric vehicle ambitions of its own. The company is on the verge of launching the electric version of its Mustang, the Mach-E. 

After analysts at JPMorgan test drove the Mach-E, they said in a note on January 8, “Ford is showing more and more signs of becoming a credible contender in battery electric vehicles.”

Ford is also developing an electric version of its pick-up truck, the F-150, though there is no official release date for the vehicle. 

Read more: Goldman Sachs reveals the 8 ‘green-energy majors’ that are set to jump in value in a sector worth trillions of dollars as the renewables race heats up

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Peter Thiel bought this Miami compound on an exclusive manmade island for $18 million – see inside

Jacques Nasser ford miami compound
Peter Thiel’s Miami property.

Tech billionaire Peter Thiel bought an $18 million Miami property in September, Becky Peterson at Insider reported.

Public records show that Thiel bought the property from the former chief executive of Ford Motor Company, Jacques Nasser, through an LLC called Atlantic View Holdings.

Read more: Peter Thiel bought an $18 million island estate in Miami that was once featured on MTV’s ‘The Real World’

The waterfront property comprises two homes that span a combined 10,041 square feet, as well as two outdoor swimming pools and a private boat dock, according to the Multiple Listing Service.

It sits on the manmade Venetian Islands in Biscayne Bay. The 72-year-old Nasser, who was Ford’s CEO from 1999 to 2001, bought both homes in 2005 for $5 million, per Mansion Global. Before it was acquired by Nasser, the house was the site of the 1996 season of MTV’s “The Real World: Miami.” 

Thiel, who was a co-founder of PayPal and Palantir and sits on the board of Facebook, bought the property for slightly less than the original $19.9 million listing price from July.

Take a look at the sprawling waterfront compound. 

The 72-year-old former chief executive for Ford Motor Company sold his Miami compound for $18 million, Mansion Global reported.

Jacques Nasser ford miami compound
Peter Thiel’s Miami property.

The sale, which closed in late September, was the most expensive transaction on Miami’s Venetian Islands — a chain of artificial islands in Biscayne Bay — at the time, per Mansion Global.

The compound was listed for $19.9 million.

The Venetian Islands – which straddle the cities of Miami and Miami Beach – is made up of six exclusive manmade islands: Biscayne Island, San Marco Island, San Marino Island, Di Lido Island, Rivo Alto Island, and Belle Isle.

venetian islands miami
The Venetian Islands.

Nasser’s former compound sits on Rivo Alto Island.

Jacques Nasser bought the home in 2005 for $5 million, four years after he retired from Ford, per Mansion Global.

jacques nasser ford
Nasser in Germany in 2001.

He served as the CEO of Ford Motor Company from 1999 to 2001.

The Venetian Islands property has parking space for four cars.

Jacques Nasser ford miami compound
Peter Thiel’s Miami property.

Source: Luxe Living Realty

The two homes span a combined 10,041 square feet of living space.

Jacques Nasser ford miami compound
Peter Thiel’s Miami property.

Source: Luxe Living Realty

The listing photos show two spacious and airy living areas.

Jacques Nasser ford miami compound
Peter Thiel’s Miami property.

Source: Luxe Living Realty

One of the kitchens appears to be outfitted in white marble.

Jacques Nasser ford miami compound
Peter Thiel’s Miami property.

Source: Luxe Living Realty

The other is decked out with wood paneling.

Jacques Nasser ford miami compound
Peter Thiel’s Miami property.

Source: Luxe Living Realty

One of the bedrooms features a wall of glass with views of the water.

Jacques Nasser ford miami compound
Peter Thiel’s Miami property.

Source: Luxe Living Realty

Like many Miami homes, Nasser’s former compound has plenty of outdoor living space as well.

Jacques Nasser ford miami compound
Peter Thiel’s Miami property.

Source: Luxe Living Realty

Two outdoor swimming pools overlook the bay.

Jacques Nasser ford miami compound
Peter Thiel’s Miami property.

Source: Luxe Living Realty

The home’s listing agent, Dora Puig, declined to comment on the identity of the buyer who snapped up the property that Nasser owned for 15 years. Public records seen by Insider revealed Thiel as the buyer.

Jacques Nasser ford miami compound
Peter Thiel’s Miami property.

Source: Luxe Living Realty

The compound’s $18 million price tag is not unusual in the ritzy Venetian Islands.

Jacques Nasser ford miami compound
Peter Thiel’s Miami property.

On the same island, a six-bedroom estate is listed for $23 million. And on nearby San Marco Island, a 15,000-square-foot waterfront mansion was asking $34 million. 

Keith Rabois, Thiel’s colleague at the Founders Fund venture capital firm, bought a $29 million mansion on the island in December, just a 20 minute walk from Thiel’s property.

Keith Rabois
Keith Rabois is a venture capitalist who made early investments in companies like DoorDash and Airbnb.

Source: WSJ

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