Ford lost $5B on EVs in 2024, expects to do the same this year

Feb 6

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Jack Aylmer Energy Correspondent

By Jack Aylmer (Energy Correspondent), Jack Henry (Video Editor), Ali Caldwell (Motion Graphics Designer)

Ford’s EV division reported a $5.1 billion loss in 2024, up from $4.7 billion in 2023, and anticipates losses will rise to $5.5 billion in 2025. However, sales of gas-powered vehicles helped the company exceed Wall Street expectations, with a $5.9 billion net income for 2024.
Potential U.S. policy changes could further impact Ford’s EV business, including the Trump administration’s plans to roll back electric vehicle tax credits and incentives, as well as the proposed 25% tariffs on imports from Mexico and Canada.
Ford is hopeful that its cheaper upcoming electric models with new battery technologies that reduce the cost of vehicles will help improve EV profitability in the future.

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Ford’s electric vehicle (EV) division reported a $5.1 billion loss in 2024, an increase from the $4.7 billion deficit recorded the previous year. The company projects even greater losses in 2025, anticipating a $5.5 billion shortfall as it continues investing in EV production.

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“We expect a loss of $5 billion to $5.5 billion for Ford Model E, holding losses stable year over year, while continued industry pricing pressure remains,” Ford Vice President of Finance Sherry House said during an earnings call this week.

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How did EV losses impact Ford’s overall profitability?

Despite those EV losses, Ford still exceeded Wall Street expectations largely due to sales of its gasoline-powered models. The automaker reported a $5.9 billion net income for 2024, with adjusted earnings reaching $10.2 billion.

What future challenges does Ford’s EV business face?

Ford’s 2025 EV revenue projections do not account for potential U.S. government policy shifts that could impact costs.

President Donald Trump has proposed a 25% tariff on imports from Mexico and Canada, both of which Ford sources EV components from.

The automaker also assembles some electric models in Mexico and is investing in EV production facilities in Canada.

Additionally, the Trump administration has signaled plans to roll back EV-related tax credits and manufacturing incentives introduced under former President Joe Biden. However, eliminating these subsidies would require Congressional approval.

What happens next?

Looking ahead, Ford is hopeful that its plans to produce cheaper electric models will ultimately help balance out the finances of its EV business.

Using new battery technologies that “substantially reduce” vehicle costs, the automaker is betting on attracting consumers with a more affordable electric lineup.

Tags: Canada, China, Donald Trump, earnings, Electric Vehicle Batteries, Electric vehicles, Ford, Tariff

[Jack Aylmer]

FORD LOST BILLIONS OF DOLLARS ON ELECTRIC VEHICLES IN 2024-

AND THE COMPANY NOW SAYS IT EXPECTS TO DO THE SAME THIS YEAR.

THIS WEEK, THE AUTOMAKER’S EV BUSINESS REPORTED A 5.1 BILLION DOLLAR LOSS IN 2024-

AN INCREASE FROM THE 4.7 BILLION DOLLAR DEFICIT IT RECORDED THE YEAR PRIOR.

NOW IN 2025, FORD IS ANTICIPATING ITS ANNUAL EV LOSSES WILL BALLOON EVEN FURTHER, REACHING 5.5 BILLION DOLLARS.

“We expect a loss of 5 billion to five and a half billion for Ford Model E, holding losses stable year over year, while continued industry pricing pressure remains.” -Sherry House, Ford Vice President of Finance

BUT DESPITE THESE CHALLENGES WITH ELECTRIC VEHICLE PROFITABILITY-

THE COMPANY ACTUALLY EXCEEDED WALL STREET EXPECTATIONS WITH ITS 2024 FULL-YEAR EARNINGS.

THIS WAS THANKS TO THE MONEY MADE BY FORD’S GASOLINE-POWERED MODELS-

WHICH HAD A FULL-YEAR NET INCOME OF 5.9 BILLION DOLLARS, AND ADJUSTED EARNINGS TOTALING 10.2 BILLION DOLLARS.

MEANWHILE, THE 2025 REVENUE FORECASTS FOR THE AUTOMAKER’S EV BUSINESS DO NOT FACTOR IN POTENTIAL CHANGES IN U.S. GOVERNMENT POLICY.

THIS INCLUDES POTENTIAL COST INCREASES LINKED TO PRESIDENT DONALD TRUMP’S PROPOSED 25 PERCENT TARIFFS ON IMPORTS FROM MEXICO AND CANADA-

BOTH OF WHICH FORD SOURCES EV COMPONENTS FROM.

THE AUTOMAKER ALSO ASSEMBLES SOME OF ITS ELECTRIC MODELS IN MEXICO FOR EXPORT TO THE U.S.-

AND IS INVESTING HEAVILY IN A EV MANUFACTURING FACILITY IN CANADA.

FORD’S CEO WARNED THAT EXTENDED TARIFFS COULD LEAD TO “BILLIONS OF DOLLARS OF INDUSTRY PROFITS WIPED OUT”-

AND MAY RESULT IN HIGHER VEHICLE PRICES FOR CONSUMERS.

ADDITIONALLY, THE TRUMP ADMINISTRATION HAS INDICATED IT WANTS TO ROLL BACK EV-RELATED TAX CREDITS AND MANUFACTURING INCENTIVES INTRODUCED UNDER FORMER PRESIDENT JOE BIDEN.

THIS COULD FURTHER IMPACT THE PROFITABILITY OUTLOOK OF FORD’S EVS-

THOUGH THE WHITE HOUSE WILL NEED CONGRESSIONAL ACTION TO ELIMINATE THOSE SUBSIDIES.

LOOKING AHEAD, THE AUTOMAKER IS HOPEFUL ITS PLANS TO PRODUCE CHEAPER ELECTRIC MODELS USING NEW BATTERY TECHNOLOGIES THAT REDUCE VEHICLE COSTS-

WILL ULTIMATELY HELP BALANCE OUT THE FINANCES OF ITS EV BUSINESS.

FOR MORE STORIES ABOUT ELECTRIC VEHICLES BOTH IN THE U.S. AND AROUND THE WORLD, DOWNLOAD THE STRAIGHT ARROW NEWS APP AND SIGN UP FOR ALERTS FROM ME- JACK AYLMER.