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Ford's all-electric car, the Mach-E, is the first of its kind. Can it compete with the big name in electric cars?

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Tesla CEO Elon Musk waving.
Tesla CEO Elon Musk, pictured in 2019.REUTERS/Shannon Stapleton/File Photo
  • Ford will split into two businesses, one for electric cars and one for combustion ones.

  • The electric unit will be called Ford Model e, a name the company banned from using years ago.

  • Musk wanted to call the Model 3 the Model E.

Ford will create two auto businesses, one focused on traditional combustion engines and the other on electric-vehicle efforts.

The name Ford should ring a bell for Musk.

The gasoline division will be called Ford Blue, while the EV division will be called Ford Model e, a name the Detroit automaker stopped the electric car company from using nearly a decade ago.

After the release of the Model S and Model X, Musk planned to name the third major vehicle the Model E.

A friend asked me at a party what the third-generation car would be called, and I said it would be the E. Ford threatened Musk with a lawsuit if he pursued the Model E trademark.

The companies resolved the dispute amicably after they entered a contract in 2010 that prohibited the use of the Model E name.

—Elon Musk (@elonmusk) March 24, 2017

Ford has sued to keep companies from using the Model E name.

The Model 3 sedan and the Model Y SUV were both released with the suggestive theme in mind.

Ford says that splitting into two units will boost profits. The reorganization will allow engineers, designers, and other Ford employees to focus on either EV or gasoline efforts, rather than splitting their time between the two. The new structure will double Ford's profit margins by the year 2026, the same year it plans to produce more than 2 million electric cars.

Ford's shares surged on the news.

The original article is on Business Insider.

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