Ford lost $5B on EVs in 2024, expects to do the same this year

• Ford’s EV division reported a $5.1 billion loss in 2024, up from $4.7 billion in 2023, and anticipates losses will rise to $5.5 billion in 2025. However, sales of gas-powered vehicles helped the company exceed Wall Street expectations, with a $5.9 billion net income for 2024.
• Potential U.S. policy changes could further impact Ford’s EV business, including the Trump administration’s plans to roll back electric vehicle tax credits and incentives, as well as the proposed 25% tariffs on imports from Mexico and Canada.
• Ford is hopeful that its cheaper upcoming electric models with new battery technologies that reduce the cost of vehicles will help improve EV profitability in the future.

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Ford’s electric vehicle (EV) division reported a $5.1 billion loss in 2024, an increase from the $4.7 billion deficit recorded the previous year. The company projects even greater losses in 2025, anticipating a $5.5 billion shortfall as it continues investing in EV production.

“We expect a loss of $5 billion to $5.5 billion for Ford Model E, holding losses stable year over year, while continued industry pricing pressure remains,” Ford Vice President of Finance Sherry House said during an earnings call this week.

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How did EV losses impact Ford’s overall profitability?

Despite those EV losses, Ford still exceeded Wall Street expectations largely due to sales of its gasoline-powered models. The automaker reported a $5.9 billion net income for 2024, with adjusted earnings reaching $10.2 billion.

What future challenges does Ford’s EV business face?

Ford’s 2025 EV revenue projections do not account for potential U.S. government policy shifts that could impact costs.

President Donald Trump has proposed a 25% tariff on imports from Mexico and Canada, both of which Ford sources EV components from.

The automaker also assembles some electric models in Mexico and is investing in EV production facilities in Canada.

Additionally, the Trump administration has signaled plans to roll back EV-related tax credits and manufacturing incentives introduced under former President Joe Biden. However, eliminating these subsidies would require Congressional approval.

What happens next?

Looking ahead, Ford is hopeful that its plans to produce cheaper electric models will ultimately help balance out the finances of its EV business.

Using new battery technologies that “substantially reduce” vehicle costs, the automaker is betting on attracting consumers with a more affordable electric lineup.