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.
"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."
Read at Fortune
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