Ford CEO Acknowledges Customer Feedback Amid $5 Billion EV Loss
Ford Motor Company is grappling with significant challenges in its electric vehicle (EV) division, which recorded a staggering loss of nearly $5 billion last year. During a recent earnings call, CEO Jim Farley acknowledged the situation, stating, “The customer has spoken.”
Ford’s Financial Performance in 2025
In 2025, Ford’s EV unit experienced a loss of $4.8 billion, driven by a 14% decline in sales of its popular models, including the Mustang Mach-E, F-150 Lightning, and E-Transit. The automaker’s earlier strategy, which focused on electrifying high-end vehicles, has not yielded the expected results.
Sales Struggles
- The Mustang Mach-E and F-150 Lightning sales dropped significantly.
- Sales of the F-150 Lightning fell to 27,307 units, an 18.5% decrease from 2024.
- Mustang Mach-E sales were approximately 51,620, remaining stable year-over-year.
With the expiration of the $7,500 federal tax credit in September, sales took an even sharper decline. For instance, sales of the F-150 Lightning plummeted from 5,197 units in December 2024 to just 1,724 a year later.
Shift in Strategy
In light of these issues, Ford is recalibrating its electric vehicle approach. The company will focus on producing lower-cost, high-volume EVs while enhancing its hybrid offerings. Ford has halted production of its all-electric F-150 Lightning, intending to reintroduce it later as an extended-range electric vehicle (EREV), which will incorporate a gas generator to address range and towing concerns.
Future Plans and Developments
Ford is actively developing a new universal EV platform expected to produce vehicles priced around $30,000. This initiative aims to facilitate the creation of at least five different models, including SUVs and commercial vans, by 2027.
According to CEO Farley, the goal is to establish a profitable EV segment without relying on government subsidies. He emphasized the importance of competing effectively in the lower-cost market segment, similar to strategies employed by competitors like Tesla.
- Ford aims for break-even in its EV business by 2029.
- Current projections indicate the EV segment will continue to operate at a loss for several years.
Investor Sentiment
Investor reactions to Ford’s financial outlook have been mixed. The company recently missed earnings estimates for the quarter, reporting adjusted earnings of 13 cents per share against a forecast of 19 cents. However, analysts are cautiously optimistic about Ford’s future, noting expected increases in cash flow and capital expenditures in 2026.
As Ford adapts to the evolving EV market, its focus on customer feedback and cost-effective solutions may help navigate this challenging landscape.
