A few years earlier, Ford moved aggressively into the electric vehicle market, positioning itself ahead of several legacy automakers.
It launched three EV models in rapid succession, anticipating that early adoption would translate into higher sales volumes and improved profitability. That strategy has proven costly.
On Tuesday, Ford disclosed that its electric vehicle division recorded a $4.8 billion loss in 2025. The company projects an additional loss of between $4 billion and $4.5 billion for 2026.
Executives further indicated that the EV business is expected to remain unprofitable for at least two more years beyond that.
“We are now targeting break-even around 2029,” Ford’s chief financial officer, Sherry House, said on Tuesday during a conference call to discuss the company’s financial results.
With the 2025 results included, Ford’s cumulative losses in its electric vehicle operations since 2022 now exceed $16 billion.
In December, the company outlined a significant recalibration of its EV strategy.
It halted production of one of its flagship models, the F-150 Lightning pickup truck, and abandoned plans to manufacture an all-electric truck at a new facility under development in Tennessee. Plans for an electric commercial van were also scrapped.
In place of a fully electric approach, Ford intends to introduce a variant of the Lightning that incorporates a gasoline engine capable of recharging the battery while driving.
The Tennessee plant will instead produce a gasoline-powered truck. Meanwhile, hybrid and gasoline-powered delivery vans will be built at an Ohio facility.
Ford has maintained that it remains committed to launching a midsize pickup truck priced at approximately $30,000.
Scheduled for release in 2027, the vehicle is expected to rely on newly developed components and updated manufacturing processes that the company believes will significantly reduce production costs.
The automaker also dissolved its battery-production partnership with South Korean firm SK On. Under the revised arrangement, Ford has assumed full ownership of a battery plant in Kentucky, while SK On now retains sole ownership of a separate facility in Tennessee.
As part of the strategic shift, Ford recorded $19.5 billion in charges against its fourth-quarter earnings to account for restructuring costs and revised planning assumptions.
For the fourth quarter alone, Ford reported a net loss of $11.1 billion. For the full year 2025, the company posted a total loss of $8.2 billion.
The financial impact of its electric vehicle operations was partially offset by strong profitability in its traditional internal-combustion vehicle divisions and its commercial vehicle and services segment.
Looking ahead, Ford expects improved financial performance in 2026. The company forecasts adjusted earnings before interest, taxes and other items in the range of $8 billion to $10 billion for the year. By comparison, adjusted earnings on the same basis totaled $6.8 billion in 2025.
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