Ford TORCHES $19.5 Billion on EVs – What Happened?

Ford just torched $19.5 billion on electric vehicles nobody wants, forcing a humiliating pivot that exposes the folly of rushed green mandates.

Story Snapshot

Ford reports $11.1 billion quarterly loss driven by Model e EV division charges.
CEO Jim Farley scraps high-end EVs like the next-gen electric F-Series due to weak demand.
Strategic shift to hybrids, EREVs, and $30k affordable EVs targets profitability by 2029.
Customer preference for hybrids validated; Ford holds 80% U.S. truck hybrid share.
Inspired by BYD costs, Farley bets on market realities over compliance vehicles.

Quarterly Loss Triggers Massive Write-Down

Ford announced a $19.5 billion pre-tax write-down on its Model e EV unit on December 15, 2025. This charge included $5.5 billion in cash effects and led to the $11.1 billion Q4 loss revealed on February 10, 2026. CEO Jim Farley cited misjudged demand for premium EVs priced $50,000 to $70,000. The company scrapped plans for a next-generation electric F-Series truck. Production cuts followed softening U.S. sales, where EVs hold only 5% market share.

CEO Farley Leads Pragmatic Pivot

Jim Farley declared that the customer has spoken against large premium EVs during earnings calls. Ford shifts to hybrids across its lineup and extended-range electric vehicles for trucks and towing. EREVs use a gas generator to recharge batteries, suiting American preferences for range and power. Farley draws inspiration from BYD’s low-cost structure for a skunkworks project in Kentucky and Mexico. This aligns with the dealer, and the UAW pushes for production flexibility.

Background of Ford’s EV Struggles

Ford launched its aggressive EV push in 2021 amid global mandates, but U.S. sales lagged at 1.2 million units in 2024 versus China’s 6.4 million. Model e posted $4.8 billion losses in 2025, with $1.2 billion in Q4 alone from high battery costs and low F-150 Lightning uptake. Ford cut 35% of EV capacity in 2023-2024. Hybrids now comprise 17% of output, targeting 50% by 2030. This mirrors industry delays at GM and Rivian for sub-$50,000 models.

New Platforms and Future Plans

Ford introduces the Universal EV Platform for a $30,000 midsize pickup launching in 2027. Partnerships like Renault’s platform and battery plant conversions support the pivot. The company projects $4-5 billion EV losses in 2026 but aims for profitability by 2029. An energy storage unit with 20 GWh capacity follows Tesla’s high-margin model. Half of the 2030s ‘ electrified sales will be hybrids or EREVs, balancing emissions goals with demand.

Impacts on Stakeholders and Market

Investors approve the $19.5 billion charge as smart capital allocation, boosting stock transparency. U.S. consumers gain affordable options while workers transition to hybrid production, preserving jobs. Short-term cash outflows hit $5.5 billion, mostly in 2026, with retooling delays. Long-term, Ford reduces EV reliance, supporting Trump-era policy flexibility. The move accelerates industry hybrid trends, as Toyota and Chevy follow, validating hybrids as the practical EV bridge.