The dynamics of the US electric vehicle market shifted dramatically in 2025. Tesla lost its crown as the world’s largest EV brand to China’s BYD, while overall EV sales in the US declined due to rising ownership costs. Many automakers have been forced to rethink their electrification strategies, and Ford is no exception.
However, the company’s missteps in EV development have come at a steep price. Ford has announced $19.5 billion in charges as it restructures an EV strategy that struggled to make an impact amid competition from Tesla and other rivals.
Ford said the $19.5 billion will be recorded as “special items,” with roughly $6.5 billion linked to the cancellation of multiple EV projects. Additionally, plans for a US-based battery manufacturing operation were placed on hold, costing another $6 billion. This follows a $5 billion loss Ford reported on its EV efforts in 2024.
These large charges are intended to prevent even greater EV-related losses in the near term, with the company aiming for profitability in its electric vehicle business by 2029.
“Instead of plowing billions into the future knowing these large EVs will never make money, we are pivoting,” Ford CEO Jim Farley said. The automaker still plans a major portfolio overhaul, targeting a 50-50 volume split between internal combustion vehicles and a combination of EVs, hybrids, and extended-range electric vehicles (EREVs).
Ford had initially hoped that a flagship vehicle like the F-150 Lightning would cement its EV success, but the electric pickup failed to deliver blockbuster results. A lack of mass-market, affordable EVs capable of challenging Tesla compounded the problem.
In response, the company canceled plans for an all-electric F-150 Lightning and shifted to a gasoline-powered extended-range EV format. Ford is now focusing on “higher-return opportunities” and battery energy storage, in addition to shelving multiple electric vehicle projects.
The company attributes its strategic pivot to slowing demand, changes in regulatory policies, and rising production costs. Moving forward, Ford aims to prioritize family-oriented, affordable EVs capable of high-volume sales.
Built on the Universal EV Platform, the first new vehicle in this approach will be a midsize pickup scheduled for release in 2027, expected to cost around $30,000. Farley also noted on an earnings call that a lineup of affordable, small, highly efficient electric vehicles is imminent.
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