Ford Faces Record Loss as Electric Drive Stumbles

Ford’s latest earnings reveal the biggest quarterly hit in four years, with a net loss of $8. 2 billion for 2025 – the worst since the 2008 downturn. The blow comes largely from its electric vehicle (EV) arm, which posted a $4. 8 billion loss this year. Sales of EVs fell sharply after the U. S. government cut a $7, 500 federal tax credit that had boosted early adoption. Because of this setback, Ford announced a shift from full electrification to partial electrification and cancelled the electric F‑150 Lightning pickup. The company’s outlook remains grim. Executives predict another $4–$4. 5 billion loss in 2026 and expect to break even only around 2029. Without the tax credit, Ford is betting on two levers: cheaper cars and autonomous technology. A $30, 000 EV with hands‑free driving is slated for release in 2028.This price point would undercut Tesla’s affordable models, which start above $36, 000 without the credit. Farley notes that overseas markets look very different. Chinese EV makers, backed by generous subsidies, can sell vehicles at low prices and dominate global sales. In fact, BYD topped Ford’s worldwide vehicle count in 2025 for the first time. To stay competitive, Ford is exploring a partnership with China’s Geely, according to recent reports. The loss was not only due to the tax cut. A tariff change at the end of last year meant Ford received less relief, doubling its tariff costs to $2 billion. Despite these challenges, the CEO remains hopeful that policy stability will improve in 2024, especially with new emission standards.