Ford Books $19.5B EV Write-Down, Posts $5B Loss and U-Turns to Hybrids
Ford reported a $5 billion annual loss after a $19.5 billion write-down of its electric vehicle assets, following more than $13 billion in Model-E division losses since 2023. The company has scrapped its F-150 Lightning EV program and is pivoting future investments toward hybrid models.
1. Electric Division Write-Down and Annual Loss
Ford recorded a $19.5 billion write-down on its EV assets, contributing to a $5 billion loss in its latest fiscal year. CEO Jim Farley cited weaker-than-projected EV demand as the primary driver of this charge.
2. Cumulative Model-E Losses
Since 2023, Ford’s Model-E division has accumulated over $13 billion in losses as sales of Mustang Mach-E and F-150 Lightning fell short of projections. These deficits reflect both elevated production costs and softer consumer uptake.
3. Underperforming EV Programs
Sales of the Mustang Mach-E crossover and F-150 Lightning pickup reversed in 2025, prompting Ford to abandon further development of the F-150 EV variant. The company confirmed it will halt expansion of its dedicated EV lineup.
4. Strategic Pivot to Hybrids
In response, Ford plans to redirect future investments toward hybrid powertrains and conventional models rather than solely electric platforms. Management expects hybrids to bridge demand gaps while mitigating losses from battery electric vehicles.