Ford reports $4.8 billion loss for its EV business in 2025

Ford’s Model e division comprises only battery-electric passenger cars, such as the Mustang Mach-E and the electric pickup F-150 Lightning, which was discontinued in the second half of 2025, as well as the battery-electric models Capri and Explorer, both introduced in Europe in 2024 and manufactured in Cologne, Germany. However, electric vans such as the E-Transit and E-Transit Custom are not included, as they fall under the Ford Pro division.

The $4.8 billion loss relates solely to the operating business (EBIT). Additionally, Ford recorded impairments totalling $10.7 billion in the fourth quarter of 2025 for asset write-downs and the cancellation of electric vehicle programmes under Model e. These impairments form part of the total $19.5 billion in write-downs that Ford announced in December. At that time, Ford revealed a comprehensive restructuring of its electric vehicle business, permanently halting the already paused production of the F-150 Lightning and abandoning the T3 project, a next-generation electric pickup that will now not enter the market.

Nevertheless, Model e’s business showed signs of improvement last year: the division’s revenue grew by 73% to $6.7 billion, while losses compared to 2024 decreased by just 9.4%. In other words, Ford has struggled to scale its electric mobility operations and is likely burdened by high fixed costs within the Model e segment, which could only be offset by significantly higher sales volumes.

Incidentally, Ford’s electric vehicle business contributed only a small fraction of the company’s total revenue: in 2025, this amounted to $187.3 billion (+1%). This means that Model e’s $6.7 billion accounts for just 3.6% of the total business. As all other divisions are profitable, they must absorb the losses incurred by Model e.

For 2026, Ford expects only a slight improvement in Model e’s losses, with a projected reduction to between $4.0 and $4.5 billion. Additionally, Ford plans to account for the remaining $7 billion in impairments related to its electric vehicle operations in 2026 and 2027.

ford.com (PDF file)