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The AC Cobra, sold in the United States as the Shelby Cobra and AC Shelby Cobra, is a sports car manufactured by British company AC Cars, with a Ford V8 engine. It was produced intermittently in both the United Kingdom and later the United States since 1962.

Like many British manufacturers, AC Cars had been using the Bristol straight-6 engine in its small-volume production, including its AC Ace two-seater roadster. This had a hand-built body with a steel tube frame, and aluminium body panels that were made using English wheeling machines. The engine was a pre-World War II design by BMW which by the 1960s was considered dated. In 1961 Bristol decided to cease production of its engine.

In September 1961, American retired race car driver and automotive designer Carroll Shelby wrote to AC asking if they would build him a car modified to accept a V8 engine. Bristol engines for the AC Ace two-seater sports car had recently been discontinued so AC agreed, provided a suitable engine could be found. Shelby went to Chevrolet to see if they would provide him with engines, but not wanting to add competition to the Corvette, Chevrolet declined. However, Ford wanted a car that could compete with the Corvette and they happened to have a brand new engine which could be used in this endeavor: the Windsor 3.6-litre (221 cu in) engine – a new lightweight, thin-wall cast small-block V8. Ford provided Shelby with two engines.

In 1963 to keep production focused on producing cars for Shelby American Inc., the Ruddspeed Ace was discontinued. To supply cars to the European market, AC began to market and sell the Cobra in Europe. Advertisements from the time state that the Cobra was designed to meet the requirements of Shelby American Inc.

A new chassis was required, developed, and designated Mark III. The new car was designed in cooperation with Ford in Detroit. A new chassis was built using 101.6 mm (4 in) main chassis tubes, up from 76.2 mm (3 in), and coil spring suspension all around (an especially significant change up front, where the previously-used transverse leaf spring had done double duty as the top link). The new car also had wide fenders and a larger radiator opening. It was powered by the "side oiler" Ford 7.0 L (427 cu in) FE engine equipped with a single 4-barrel 780 CFM Holley carburetor rated at 317 kW (425 hp; 431 PS) at 6000 rpm and 651 N⋅m (480 lb⋅ft) at 3700 rpm of torque,[12] which provided a top speed of 264 km/h (164 mph) in the standard model. The more powerful tune of 362 kW (485 hp; 492 PS) with a top speed of 298 km/h (185 mph) in the semi-competition (S/C) model.

Competition models (CSX/CSB 3001–3100)
Cobra Mark III production began on 1 January 1965; two prototypes had been sent to the United States in October 1964. Cars were sent to the US as unpainted rolling chassis, and they were finished in Shelby's workshop.

Unfortunately, The MK III missed homologation for the 1965 racing season and was not raced by the Shelby team. Only 56 of the 100 planned cars were produced. Of those, 31 unsold competition models were detuned and fitted with windscreens for street use. Called S/C for semi-competition, an original example can currently sell for US$1.5 million, making it one of the most valuable Cobra variants.[13]

Production models (CSX/CSB 3101–3360)
Some Cobra 427s were fitted with Ford's 7-litre (428 cu in) engine, a long stroke, smaller bore, lower cost engine, intended for road use rather than racing. The AC Cobra was a financial failure that led Ford and Carroll Shelby to discontinue importing cars from England in 1967.