"For months, Ford Motor Company CEO Jim Farley warned anyone who would listen that the electric vehicle transition was about to hit a wall, starting in September, when he predicted that the expiration of federal tax credits would cut the EV market in half. He said EVs would remain a "vibrant industry" but predicted they were "going to be smaller, way smaller than we thought.""
"On Tuesday, during Ford's fourth-quarter earnings call, Farley presented the Detroit legacy manufacturer's confirmation of his predictions: a $4.8 billion operating loss for the Model E electric vehicle unit. CFO Sherry House confirmed that the bleeding won't stop there. The company expects the unit to lose another $4 billion to $4.5 billion in 2026, with the break-even target pushed back to 2029."
Jim Farley warned that the electric vehicle transition would slow after the expiration of federal tax credits, predicting the U.S. EV market could fall to about 5% from roughly 10–12%. The end of the $7,500 consumer incentive was called a "game-changer." Ford reported a $4.8 billion operating loss for its Model E unit and expects an additional $4.0–4.5 billion loss in 2026, with break-even postponed to 2029. Farley stated "The customer has spoken," and Ford plans to stop building EVs solely for compliance, pivoting toward high-volume, affordable EVs. Ford stock rose over 27% in six months.
Read at Fortune
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