In an earnings call on Tuesday, Ford CEO Jim Farley revealed that the automaker has quietly created its own “skunkworks” team to develop low-cost electric vehicles, showing that Ford remains determined to compete with the likes of Tesla and Chinese EV makers despite recent pullbacks in its electrification plans.

This secretive team, led by former Tesla engineer Alan Clarke, was established two years ago as a “start-up” within Ford tasked specifically with creating affordable EVs. Clarke brings over a decade of experience from Tesla, while other team members hail from AMP, an energy management startup acquired by Ford last year.

Operating out of Irvine, California, the skunkworks squad has already developed a flexible EV platform that will not only underpin several types of EVs but also enable new software services and revenue streams, Farley explained. The ultimate goal is to take on Tesla’s future low-cost model and Chinese companies like BYD that have successfully captured mass market EV buyers.

The fruits of their labor likely won’t emerge for several more years, however. This platform will form the foundation for Ford’s third generation of EVs, coming after the electric truck and three-row SUV slated to launch in 2025 out of the company’s Tennessee factory. Those second-gen models are expected to be profitable from day one.

In the meantime, hybrids will play an increasingly vital role in Ford’s lineup, with sales projected to jump 40% in 2024. And while Ford has slowed its aggressive EV investment plans, cutting $12 billion in spending, the skunkworks team proves it has not given up competing in affordable electric cars.

Tesla has set its sights on releasing a more affordable EV, but Ford is hoping its seasoned team of EV experts can beat them to the punch. It’s all part of Farley’s vision to transform Ford into an EV and software powerhouse that can lead the auto industry for years to come.