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With the Biden administration throwing billions into propping up the EV industry, former President Donald Trump has vowed to dismantle these policies, including repealing the lucrative tax credits. If Trump follows through, the financial safety net for automakers banking on EVs could disappear entirely.
Ford has already been hemorrhaging money on its electric vehicle division. The company was losing over $130,000 per EV sold in early 2024. Now, 2025 is shaping up to be another disastrous year. Ford projects a staggering $5.5 billion loss in its EV sector, mirroring the financial blow it suffered in 2024.
For a division that was supposed to be inching toward profitability, these continuous losses spell trouble. Ford had hoped to see a turnaround this year, but the numbers tell a different story.
It’s not just EV losses weighing Ford down—the company has been plagued by serious quality control issues. Costly warranty claims and declining stock prices have further weakened its position.
Ford’s stock plunged 18% last year, a reflection of mounting concerns over its EV strategy and overall financial health. In response, CEO Jim Farley has been forced to scale back ambitious EV plans.
Recently, Ford scrapped a planned three-row electric SUV and delayed the release of the highly anticipated Ford F-150 Lightning electric truck. The automaker initially believed that launching electric versions of its most iconic vehicles—such as the Mustang and F-150—would convince consumers to make the switch. However, that strategy is failing.
Consumers have been hesitant to embrace EVs, citing high costs, limited range, and poor real-world performance. The issues are particularly evident with electric trucks and SUVs—vehicles that many buyers expect to handle towing and long-distance travel.
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Farley himself acknowledged this growing problem in an earnings call:
“If you tow, it’s not a good technology,” Farley admitted. “The batteries have to be too big.”
Trucks and SUVs remain the best-selling vehicles in the U.S., and Ford had bet big on making electric versions of these high-demand models. However, the reality of EV technology is proving to be a dealbreaker.
“For larger retail electric [vehicles], the economics are unresolvable. These customers have very demanding use cases for an electric vehicle,” Farley explained.
Simply put, EVs can’t meet consumer expectations. “They tow, they go off-road, they take long road trips,” Farley noted. “These vehicles have worse aerodynamics and they’re very heavy, which means very large and expensive batteries. Retail customers have shown that they will not pay any premium for these large EVs, making them a really tough business case given the expense in the batteries.”
Ford’s ambitious push into the EV market is now backfiring. With government incentives at risk of being repealed and consumer interest fading, the company is facing a harsh reality.
Despite heavy investments and political backing, the EV dream is unraveling—leaving Ford and other automakers scrambling to find a way forward. As losses continue to mount, the question remains: Will Ford cut its losses and pivot back to what consumers actually want, or will it double down on an electric future that isn’t materializing?
