Ford Anticipates $7 Billion in EV-Related Charges Over Two Years

Automaker predicts its dedicated EV division, Model E, will break even in 2029.

Published on Feb. 11, 2026

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Ford Motor Co. has shared that it anticipates over $7 billion in EV-related charges in 2026 and 2027 as the company reshapes its EV portfolio and assets. The automaker's CFO also said Ford's Model E division, the company's dedicated EV unit, is expected to record losses of $4 billion to $4.5 billion this year, though the goal is for Model E to reach breakeven in 2029.

Why it matters

Ford's significant EV-related charges and losses underscore the challenges traditional automakers face as they transition to electric vehicles. The company's strategy pivot and investment in new EV platforms and assets highlight the competitive nature of the rapidly evolving EV market.

The details

Ford shared the details of its EV-related charges and Model E division performance during the company's fourth-quarter earnings call. CFO Sherry House said the automaker will be "rejigging" its EV portfolio and assets, as well as launching newer multi-energy platforms, which will result in around $7 billion in charges in 2026 and 2027. House also stated that Ford's Model E division, the company's dedicated EV unit, is expected to record losses of $4 billion to $4.5 billion this year, though the goal is for Model E to reach breakeven in 2029.

  • Ford anticipates the $7 billion in EV-related charges will occur in 2026 and 2027.
  • Ford's Model E division is expected to record losses of $4 billion to $4.5 billion in 2023.
  • Ford's goal is for its Model E division to reach breakeven in 2029.

The players

Ford Motor Co.

An American multinational automaker that designs, manufactures, markets, and services a full line of Ford cars, trucks, SUVs, electrified vehicles, and Lincoln luxury vehicles.

Sherry House

The Chief Financial Officer of Ford Motor Co.

Jim Farley

The Chief Executive Officer of Ford Motor Co.

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What they’re saying

“In 2026 and 2027, we expect to record about $7 billion in charges related to our updated EV strategy.”

— Sherry House, Chief Financial Officer, Ford Motor Co. (Benzinga)

“We continue to target Model E reaching breakeven in 2029.”

— Sherry House, Chief Financial Officer, Ford Motor Co. (Benzinga)

“Our Universal EV Platform would help drive profitable growth in the lower price segments.”

— Jim Farley, Chief Executive Officer, Ford Motor Co. (Benzinga)

What’s next

Ford's strategy and investment in its EV division will be closely watched by investors and industry analysts as the company navigates the transition to electric vehicles.

The takeaway

Ford's significant EV-related charges and losses highlight the challenges traditional automakers face as they invest heavily in electrification to compete with newer EV-focused companies. The company's strategy pivot and focus on affordable EV platforms could be crucial in capturing market share in the lower-priced EV segments.