Ford Motor Co f CEO Jim Farley On Monday he was confident of being able to keep up Tesla Inc TSLA At EV returns.

What happened: According to Farley, Tesla had a large lead in the electric vehicle business, similar to what Ford had over the Pro. However, “they’re seeing a lot more pressure now,” Farley said in one interview with Bloomberg television On Monday.

When asked if Tesla’s catch-up will result in Ford increasing earnings from its electric vehicle business or if Tesla is under pressure on margins, Farley replied, “Both things will happen.”

“They lowered the prices on the Model Y, their flagship product. Five-seven thousand dollars. It goes up, it goes down, but it’s pretty far down,” Farley said. The CEO also drew a parallel between Warren Buffett-supports BYD and Tesla as the two companies face increasing pressure from growing competitors in the electric vehicle market.

Why it matters: Ford is targeting an 8% return on its electric vehicle business by 2026. The company also plans to produce 2 million electric vehicles by the end of the year.

For full-year 2023, while Ford is expecting total adjusted EBIT to be about $9 billion to $11 billion, it also expects a loss of about $3 billion EV unit Ford Model e.

Analysts are currently skeptical about this projected growth.

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