Ford Motors on Wednesday called upon nearly 3,000 of its dealers to invest in its push toward electric vehicles. The American carmaker has prioritized trimming costs and eyed higher profits in a bid to compete with industry leader Tesla, which owns roughly 68% of the EV market share in the U.S.

To market its vehicles, Ford is relying on its dealers. Unlike Ford, Tesla and other EV manufacturers sell directly to customers.

"We're betting on the dealers. We're not going to go direct. But we need to specialize," Ford CEO Jim Farley said.

Farley has set his sights on convincing dealers to develop custom, "built to order" vehicles, in a move that is better for business and could help reduce the cost of delivering Ford electric cars and trucks by about $2,000.

Under two programs, Ford is inviting its dealers to invest either $500,000 or over $1 million to become "EV-certified." According to executives, dealers in the higher tier would reap "elite" status and receive more EVs.

Ford gave dealers a six-week deadline to make a decision and until the end of the year to invest. The company has given dealers an ultimatum: either buy into the EV vision, or lose out.

Dealers that pass on the opportunity this year will be unable to sell any fully electric Ford vehicles for three years, the company revealed.

They will be able to revise their stance in 2025, and provided dealers complete set requirements, they will be allowed to start selling EVs in January 2027.

Earlier this year, Ford announced a split between its electric vehicle endeavors and its engine-powered cars.

Ford's current lineup of all-electric vehicles includes the Ford F-150 Lightning pickup, Mustang Mach-E crossover and e-Transit van. The company is expected to expand its EV offerings globally as part of a strategy to invest $50 billion in the technologies by 2026.

President Joe Biden is set to tour the Detroit auto show Wednesday to meet with car manufacturers, with a spotlight on EVs. Last week, Treasury Secretary Janet Yellen visited a Ford factory in Dearborn, Michigan. She reiterated the Biden administration's economic priorities and commitment to electric vehicles.

Tesla Electric cars