Ford losses in the electric vehicle sector are set to worsen in 2025, with the company projecting financial setbacks of up to $5.5 billion. In 2024, Ford already recorded a $5.1 billion deficit linked to its clean energy vehicle operations. The persistent financial strain stems from the high production costs of electric vehicles, primarily due to expensive battery technology. Despite Tesla’s struggles to achieve profitability until 2020, General Motors recently reported that it has begun turning a profit on EVs. Meanwhile, Ford’s Model E division, responsible for its zero-emission lineup, has faced consecutive losses and is preparing for yet another challenging year.
Ford Losses in the EV Market
Ford’s financial report for 2024 revealed an annual loss of $5.1 billion in earnings before interest and taxes. Looking ahead, the Dearborn, Michigan-based automaker expects its Ford losses to climb even higher in 2025, ranging between $5 billion and $5.5 billion. Despite the bleak outlook, the company remains optimistic, pointing to its continued investments in electric vehicle development. Ford also reported $1.4 billion in cost reductions last year within its Model E division, a step toward improving financial efficiency.
Although Ford losses in the EV segment remain substantial, the company’s electric vehicle sales grew by 34.8% in the U.S. last year, with 97,865 new units sold. Meanwhile, hybrid models saw a 40.1% increase, reaching 187,426 units. However, gasoline-powered vehicles still accounted for the bulk of Ford’s total sales, with 1,793,541 units sold, reflecting a modest 0.2% increase over 2023.
Electric Trucks Face Major Challenges
For the 47th consecutive year, the Ford F-Series remained the best-selling truck in the U.S. However, company executives acknowledged that the F-150 Lightning, Ford’s flagship electric truck, faces considerable obstacles. During the 2024 fiscal conference call, CEO Jim Farley admitted that electric trucks struggle with towing due to their large and heavy battery packs. He also noted that EVs have worse aerodynamics and weigh significantly more than their gasoline counterparts, requiring even larger and costlier batteries to achieve competitive range figures.
With these challenges in mind, Ford has chosen to delay its next-generation electric midsize pickup truck by 18 months, pushing its expected launch to late 2027.
Future EV Strategy and Cancellations
In February 2024, Farley revealed that Ford had formed a “skunkworks team” to develop a low-cost EV platform aimed at competing with Tesla and affordable Chinese electric vehicles. Additionally, Ford engineers are working on extended-range electric vehicles (EREVs) that use a small gas engine as a generator to charge the battery. Similar to the Mazda MX-30 R-EV, these models won’t rely on the internal combustion engine for direct propulsion. Instead, electric motors will power the wheels, offering a hybrid-like range extension without traditional mechanical connections.
Meanwhile, Ford losses continued to pile up as the company abandoned its three-row electric SUV project for 2024, citing financial infeasibility. This decision cost the automaker a staggering $1.9 billion. Initially planned for release in 2024, then pushed back to 2027, the large SUV was ultimately canceled due to unfavorable market conditions.
While Ford has discontinued some projects, it still offers large electric SUVs in Europe, such as the Explorer EV, though this model is distinct from the gasoline-powered Explorer sold globally. The Explorer EV is essentially a rebadged Volkswagen ID.4, while the new Ford Capri shares its platform with the Volkswagen ID.5.
Looking ahead, Ford plans to utilize multi-energy vehicle platforms capable of supporting both combustion engines and electric drivetrains. This strategy will allow the automaker to reduce Ford losses while adapting to evolving market trends and consumer demands.
