Don't worry, Ford (F) has a plan to take on Tesla (TSLA) .

Investments in electric cars and artificial intelligence dinged Ford's first quarter profits, which sunk 35% year over year to $1.6 billion.

"The declines were driven by higher costs," said Bob Shanks, Ford's chief financial officer, in an interview with TheStreet TV.

Ford has invested $1 billion in artificial intelligence company Argo AI. "we've invested into Argo around the creation of the brain for the autonomous vehicle," Shanks said. "We expect to have our first autonomous vehicle to market by the 2021 time frame so we feel we're on track for that."

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