Ford hopes cheaper electric cars can convince EV skeptics — just like Tesla

• CEO Jim Farley talked up Ford's plans to build a new range of affordable EVs in an earnings call.

• It comes after Tesla also promised to accelerate its plans to build cheaper electric vehicles.

• Automakers are scrambling to build more affordable EVs as demand for electric vehicles stalls.

Ford has thrown down a gauntlet to Tesla by touting its upcoming range of cheap electric cars, as both companies grapple with slowing demand for EVs.

CEO Jim Farley confirmed in Ford's Q1 earnings call that the company is working on new affordable EVs that could be priced as low as $25,000 to $30,000, after Elon Musk vowed to accelerate Tesla's affordable EV plans earlier this week.

"Increasingly, our bet will be on our new small affordable platform developed by our team on the West Coast," said Farley.

Farley told investors he believes Ford can build an EV priced between $25,000 to $30,000 that is profitable, describing it as a "huge opportunity" for the company.

He said that the automaker was targeting its affordable EV push at urban and suburban customers, who tend to drive shorter distances and prioritize affordability.

"The more affordable we can make a great product, the more attractive it is to these mainstream EV adopters," Farley added.