Ford’s electric vehicle unit posted a $4.8 billion loss in 2025, as sales of its Mustang Mach-E, F-150 Lightning, and E-Transit fell 14% year-ver-year. According to a report by Business Insider, on Tuesday’s earnings call (February 10), CEO Jim Farley acknowledged the setback, saying, “So I think the customer has spoken. That’s the punchline.” For those unaware, Ford was the first legacy company that challenged Elon Musk’s Tesla with mass-market EVs. The company began in 2020 with the launch of Mustang Mach‑E. After this Ford introduced the F-150 Lightning in 2022. The company witnessed strong initial enthusiasm as it received200,000 Lightning reservations and projected 150,000 annual sales.However, the momentum faded. In the year 2025, Ford managed to sold just 27,307 F‑150 Lightnings, down 18.5% from 2024, and 51,620 Mach‑Es, flat year‑over‑year. The expiration of the $7,500 federal tax credit last September further hurt demand, with Lightning sales plunging from 5,197 units in December 2024 to just 1,724 a year later.

Pivot to Hybrids and extended-range EVs

With US EV sales slowing and hybrid demand rising, Ford is reshaping its strategy. Hybrid F‑150 sales climbed 15% last year to 84,934 units, underscoring consumer preference for flexibility.Ford has ended production of the all‑electric Lightning and plans to relaunch it as an extended‑range electric vehicle (EREV) — a battery‑powered truck with a gas generator onboard. Farley said the new model will address concerns about range and towing capacity: “We’re betting on hybrid across our lineup, and EREV where it makes sense. Like a large truck, where towing is a really important application, and both PHEV and pure electric will definitely not work.”

Cheaper EVs on the horizon

At the same time, Ford is developing new “universal” EV platform aimed at lower‑cost, high‑volume vehicles. The first model, a midsize pickup priced around $30,000, is expected in 2027. Ford plans at least five vehicles off the platform, including SUVs and commercial vans.Farley emphasized profitability: “We aren’t just building compliance vehicles at Ford. We’re launching a cost‑efficient, universal EV platform that will drive profitable growth. Tesla’s shown that they could, we can make money in that market, even without subsidy from the government at the right cost level.”

Ford expects its EV business to remain unprofitable

Ford expects its EV business to remain unprofitable until around 2029, according to CFO Sherry House. The company missed earnings estimates for the quarter, reporting 13 cents adjusted EPS versus analysts’ expectations of 19 cents.Still, analysts see reasons for optimism. John Rosevear of The Motley Fool told Business Insider: “On paper, it’s a big miss, but I don’t think it’s a big deal. Ford’s guidance for 2026 anticipates nice year‑over‑year increases in cash flow, as well as higher capital expenditures — all stuff that the market will almost certainly like.”