Ford CEO Acknowledges Missteps in EV Rollout After Billions in Losses

The automaker is shifting strategy toward lower-cost, high-volume EVs and leaning harder into hybrids.

Published on Feb. 11, 2026

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Ford's electric vehicle business lost nearly $5 billion in 2025, as sales of its Mustang Mach-E, F-150 Lightning, and E-Transit fell 14% from the previous year. CEO Jim Farley says 'the customer has spoken' and the company is reshaping its electric strategy, moving away from electrifying its most iconic, pricey vehicles first and instead focusing on developing a new 'universal' EV platform for lower-cost, high-volume models.

Why it matters

Ford was one of the earliest legacy automakers to challenge Tesla with mass-market EVs, but its early strategy of electrifying its most iconic nameplates didn't pan out as planned. This shift in approach highlights the challenges traditional automakers face in transitioning to electric vehicles and meeting consumer demand, as well as the importance of finding the right balance between brand cachet and affordability.

The details

Ford's EV unit posted a $4.8 billion loss in 2025, as sales of its Mustang Mach-E, F-150 Lightning, and E-Transit fell 14% from a year earlier. The company is now reshaping its electric strategy, shifting toward lower-cost, high-volume EVs and leaning harder into hybrids. Ford has ended production of the all-electric F-150 Lightning and will return it as an extended-range electric vehicle (EREV) with improved range and towing capacity. The automaker is also developing a new 'universal' EV platform designed for lower-cost, high-volume vehicles, with the first model - a roughly $30,000 midsize pickup - expected in 2027.

  • In 2025, Ford sold 27,307 F-150 Lightnings — down 18.5% from 2024 — and 51,620 Mustang Mach-Es, roughly flat year over year.
  • The $7,500 federal tax credit ended in September 2024, and the F-150 Lightning's estimated sales dropped from 5,197 units in December 2024 to just 1,724 a year later.
  • Ford expects its EV business to remain in the red for several more years, targeting break-even around 2029.

The players

Jim Farley

The CEO of Ford Motor Company.

Sherry House

The Chief Financial Officer of Ford Motor Company.

John Rosevear

A contributing analyst at The Motley Fool.

Ford Motor Company

An American multinational automaker that designs, manufactures, markets, and services a full line of Ford cars, trucks, SUVs, electrified vehicles, and Lincoln luxury vehicles, provides financial services through Ford Motor Credit Company, and is pursuing leadership positions in electrification, autonomous vehicles, and mobility solutions.

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What they’re saying

“So I think the customer has spoken. That's the punchline.”

— Jim Farley, CEO (businessinsider.com)

“We aren't just building compliance vehicles at Ford. We're launching a cost-efficient, universal EV platform that will drive profitable growth. Tesla's shown that they could, we can make money in that market, even without subsidy from the government at the right cost level.”

— Jim Farley, CEO (businessinsider.com)

“We're betting on hybrid across our lineup, and EREV where it makes sense. Like a large truck, where towing is a really important application, and both PHEV (plug-in hybrid-electric vehicles) and pure electric will definitely not work.”

— Jim Farley, CEO (businessinsider.com)

“On paper, it's a big miss, but I don't think it's a big deal. Ford's guidance for 2026 anticipates nice year-over-year increases in cash flow, as well as higher capital expenditures — all stuff that the market will almost certainly like.”

— John Rosevear, Contributing Analyst (businessinsider.com)

What’s next

Ford expects the new extended-range electric F-150 Lightning model to have improved range and increased towing capacity, addressing concerns from early adopters. The company plans to launch its first vehicle off the new 'universal' EV platform, a roughly $30,000 midsize pickup, in 2027.

The takeaway

Ford's struggles with its initial EV rollout highlight the challenges traditional automakers face in transitioning to electric vehicles and meeting consumer demand. The company's shift toward lower-cost, high-volume EVs and a greater focus on hybrids suggests it is learning from its missteps and adapting its strategy to better compete in the rapidly evolving electric vehicle market.