Ford Sticks to EV Plan Despite Shifting Market

Automaker expects $1 billion tariff hit in 2026 but remains committed to new all-electric vehicle platform for 2027

Published on Feb. 12, 2026

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Despite reports of waning interest in electric vehicles, Ford is sticking to its plan to launch a new all-electric vehicle platform in 2027. The automaker expects a $1 billion tariff hit this year but says it will continue to focus on smaller, more affordable EV models priced between $30,000 and $35,000, rather than luxury EVs. Ford's CEO Jim Farley has signaled the end of the F-150 Lightning electric truck, saying the company will instead focus on an extended-range electric truck using a gasoline engine to recharge the electric motor.

Why it matters

Ford's commitment to its EV strategy comes at a critical time, as the federal EV tax credits have expired and there are concerns about declining consumer interest. However, the automaker believes it can still turn a profit on smaller, more affordable EVs, and sees its upcoming UEV platform as a hedge against potential policy changes under a new presidential administration.

The details

Ford reported record $187.3 billion in revenues for 2025, but adjusted earnings before interest and taxes (EBIT) was down 34%, to $6.8 billion. The company's commercial truck business, Ford Pro, accounted for $6.8 billion in EBIT, with software and services making up 19% of that profit. Ford's Blue unit, which includes models like the Mustang and F-150, posted a positive EBIT of $3 billion, while the Model e unit lost $4.8 billion. Ford expects the U.S. market to buy 16-16.5 million new vehicles in 2026, higher than previous forecasts, but the company also expects a $1 billion hit from tariffs this year.

  • Ford CEO Jim Farley signaled the end of the F-150 Lightning electric truck in the company's Q4 2024 earnings call on February 5, 2025.
  • Ford reported its Q4 2025 and full-year 2025 earnings on Tuesday.

The players

Jim Farley

CEO of Ford Motor Company.

Sherry House

Chief Financial Officer of Ford Motor Company.

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.

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What they’re saying

“There's enough choice in electrics for us to cherry pick.”

— Jim Farley, CEO (Autoweek)

“No boring products, we like to say, and I can't wait for the public to see them.”

— Jim Farley, CEO (Autoweek)

What’s next

The next-generation F-150 and F-Series Super Duty are both tipped to come late in the decade and are expected to be breakthrough models for cost, technology, powertrains and functional features.

The takeaway

Despite market challenges, Ford remains committed to its electric vehicle strategy, focusing on smaller, more affordable models and a new all-electric vehicle platform set to launch in 2027. The automaker's resilience in the face of shifting consumer preferences and policy changes demonstrates its confidence in the long-term viability of EVs.