Ford's electric vehicle venture, Model e, has experienced a rollercoaster of market sentiment, transitioning from initial enthusiasm to skepticism and back again within a few short years. Despite a record-breaking sales month in 2025, driven by expiring EV tax credits, the division incurred a significant $1.4 billion loss in the third quarter alone. This downturn, primarily attributed to substantial investments in new products and heightened market competition, has prompted a strategic re-evaluation within the company. Ford's total EV losses for the first three quarters of 2025 reached $3.6 billion, with a large portion tied to its first-generation models and ongoing investments in future vehicle development.
In response to these financial challenges, Ford CEO Jim Farley is looking to the success of Chinese EV giant BYD for guidance. Farley articulated a clear vision to match BYD's cost efficiency, particularly through a clandestine project focused on developing affordable electric vehicles in Kentucky, designed to compete directly with BYD's pricing in markets like Mexico. While BYD's EVs are priced competitively, ranging from $18,000 to $53,000 in Mexico, Ford remains confident in its unique advantage: an unparalleled understanding of the truck market, especially with its F-series pickups, a segment where Chinese manufacturers have yet to establish a strong presence.
As part of its refreshed strategy, Ford announced a substantial $19.5 billion pre-tax write-down on its EV business, signaling a pivot away from an exclusive focus on battery-electric vehicles toward a more diversified portfolio that includes hybrids and extended-range electric vehicles. This strategic shift acknowledges a market preference for more accessible and versatile options, with Ford projecting that hybrids and EREVs will constitute half of its total vehicle output by 2030, a significant jump from current figures. The company, already a leader in truck hybrids, is poised to leverage this strength while adapting to evolving consumer demands and competitive landscapes.
Ford's proactive measures to realign its EV strategy and embrace a more balanced approach, incorporating both pure electric and hybrid technologies, demonstrate a resilient and adaptive spirit in the face of market dynamics. By drawing lessons from global competitors and focusing on its core strengths, Ford is charting a course not just for profitability but for sustainable innovation and leadership in the automotive industry's future. This journey reflects a commitment to progress and an unwavering belief in the potential for growth and positive impact within the rapidly evolving mobility sector.