Ford Motor reported a $4.8 billion operating loss for its Model E electric vehicle unit in 2025, confirming CEO Jim Farley's months-long warnings about the EV market's collapse. The company expects another $4 billion to $4.5 billion in losses for 2026, with profitability now pushed to 2029.

Farley had predicted that the expiration of federal tax credits would cut U.S. EV sales in half, reducing market share from roughly 10-12% to just 5%. His forecast proved accurate, with JD Power estimating EVs represented only 6.6% of new retail sales in January. The CEO declared that customers have "spoken" through their purchasing decisions, forcing Ford to abandon its compliance-focused EV strategy.

In response, Ford is pivoting to affordable EVs in the $30,000 to $35,000 range while taking approximately $7 billion in special charges through 2027 to scrap its previous approach. The company is also capitalizing on growing consumer demand for hybrids, which now account for over 20% of U.S. sales. Meanwhile, Ford's commercial division delivered $6.8 billion in Ebit, effectively subsidizing the electric losses as the company navigates this market correction.