Ford Forecasts $7B EV Charges, Model E to Lose $4–4.5B Before 2029 Breakeven
Ford plans to record $7 billion in EV-related charges in 2026–27 as it overhauls its electric portfolio, and Model E is forecast to lose $4–4.5 billion this year before targeting breakeven in 2029. In Q4, revenue rose to $42.45 billion while adjusted EPS fell to $0.13 per share.
1. EV-Related Charges and Strategy Overhaul
Ford plans to record over $7 billion in EV-related charges across 2026 and 2027 as it reconfigures its electric vehicle portfolio and assets and introduces new multi-energy platforms to streamline production and drive future profitability.
2. Model E Division Outlook
The Model E division is expected to incur losses of $4–4.5 billion this year, with management targeting a break-even point in 2029, supported by the rollout of its Universal EV Platform aimed at lower-price segments and a midsize pickup.
3. Q4 Financial Performance
In the fourth quarter, Ford achieved revenue of $42.45 billion, beating analyst expectations, but adjusted earnings dipped to $0.13 per share versus forecasts of $0.18, while revenue declined 5% year on year and cash reserves stood at $23.36 billion.
4. Partnership Discussions
Ford has denied reports of a joint venture with Xiaomi and continues to explore, but has not confirmed, battery supply partnerships with Chinese manufacturer BYD to secure lithium-ion cells for its hybrid vehicles.