Ford's electric vehicle business lost nearly $5 billion last year, CEO Farley says "Consumers have made their stance clear"

IT Home, February 12 – Ford’s electric vehicle business lost nearly $5 billion last year (IT Home note: at current exchange rates, approximately 34.592 billion RMB). CEO Jim Farley stated that Ford has received signals from the market.

“Therefore, I believe consumers have demonstrated their attitude through actions. That is the core conclusion,” he said during Tuesday’s earnings call.

By 2025, Ford’s electric vehicle division is expected to lose $4.8 billion, with sales of its Mustang Mach-E, F-150 Lightning electric pickup, and E-Transit electric van down 14% year-over-year.

Currently, the automaker is reshaping its electrification strategy, shifting toward low-cost, high-volume electric vehicles, and increasing investment in hybrid models. This marks a reversal from Ford’s early strategy, which prioritized electrifying its most iconic and highest-priced models, betting that brand loyalty and government subsidies could offset the impact of high prices.

Ford is one of the earliest traditional American automakers to mass-produce pure electric models and directly compete with Tesla. The Mustang Mach-E was launched in December 2020, targeting Tesla’s Model Y; in mid-2022, Ford introduced the F-150 Lightning electric pickup.

Theoretically, this betting logic is simple: electrify the two most influential model lines of this century-old automaker to outpace electric startups in a curve.

Initial market enthusiasm was high. Ford claimed that nearly 200,000 reservations were made for the F-150 Lightning, with an expected annual sales of 150,000 units. However, this early momentum quickly faded, and Ford has not achieved the large-scale sales it anticipated.

In 2025, Ford’s F-150 Lightning sales are projected at 27,307 units, down 18.5% year-over-year; Mustang Mach-E sales are 51,620 units, roughly flat compared to the previous year.

Since the expiration of the $7,500 federal tax credit policy in September last year, sales have declined more sharply. According to automotive media Ford Authority, F-150 Lightning sales dropped from 5,197 units in December 2024 to just 1,724 units a year later.

Meanwhile, overall sales of pure electric vehicles in the U.S. have declined, while demand for hybrid models has increased. For example, Ford’s hybrid F-150 last year sold 84,934 units, up 15% year-over-year.

As a result, Ford is adjusting its plans. The company has ceased production of the current all-electric F-150 Lightning, which will return in an extended-range electric vehicle (EREV) form at an undisclosed time.

Ford expects the new model to have improved range and towing capacity—two core pain points for early F-150 Lightning users.

“We will bet on hybrids across our entire lineup, adopting extended-range technology where appropriate,” Farley said during the meeting. “For example, large pickups for towing are core use cases, and plug-in hybrids and pure electric models clearly cannot meet these needs.”

Meanwhile, Ford is developing a new “universal” pure electric platform focused on low-cost, high-volume models. The first model will be a mid-sized pickup truck priced around $30,000, expected to launch in 2027. Ford plans to build at least five models based on this platform, potentially including SUVs and commercial vans.

“At Ford, we are not just producing models to meet regulatory requirements. We will launch a high-value, versatile electric platform to drive profitable growth,” Farley added. “Tesla has already proven this path is feasible. As long as costs are controlled, even without government subsidies, we can achieve profitability in this market.”

This aligns with industry trends. Other mainstream automakers, including Toyota, Subaru, Rivian, Nissan, and Chevrolet, plan to introduce electric models under $50,000 this year.

Nevertheless, Ford expects its electric vehicle business to remain unprofitable for the next few years. CFO Sheryl House stated that the company aims to break even around 2029.

Investors remain cautious about Ford’s long-term financial outlook. The company’s quarterly earnings fell short of expectations, with an adjusted EPS of $0.13, below analysts’ forecast of $0.19.