Key Points:
- Ford posted a massive $11.1 billion net loss for the fourth quarter.
- The company does not expect its electric vehicle unit to turn a profit until 2029.
- EV sales plummeted 50% after federal tax credits expired.
- Hybrid vehicle sales set a new record, rising nearly 22% from last year.
Ford delivered disappointing news to investors on Tuesday, reporting a massive loss for the end of the year. The automaker missed Wall Street expectations, posting a net loss of $11.1 billion for the fourth quarter and $8.2 billion for the full year. The company blamed the shortfall on expensive changes to its electric vehicle (EV) business and unexpected costs from tariffs.
The biggest drag on the bottom line came from a strategic pivot in how Ford handles electric cars. In December, the company took a $19.5 billion charge to adjust its EV plans. On top of that, a surprise change in government tariff rules added another $900 million in costs. Without these special items, executives say the company would have met its financial targets.
Ford’s dedicated EV division, known as “Model e,” continues to bleed money. The unit lost $4.8 billion last year. CFO Sherry House admitted that this division likely won’t see a profit until 2029. The company is waiting for new products from Europe and a new universal platform to hit the market before the numbers turn green.
Production issues also slowed things down. A fire at a Novelis aluminum plant disrupted the manufacturing of the popular F-Series trucks, costing Ford roughly $2 billion. The company expects these supply chain issues to keep costs high through the first half of 2026 before operations return to normal.
Looking ahead, Ford expects to earn between $8 billion and $10 billion in adjusted profit next year. However, they predict the EV unit will lose another $4 billion to $4.5 billion. CEO Jim Farley remains optimistic, stating the company is making difficult but necessary choices for a stronger future.
Despite the financial losses, people are still buying Ford vehicles. Total U.S. sales rose nearly 3% in the fourth quarter. While EV sales crashed by 50% following the expiration of federal tax credits, hybrid vehicles are booming. Ford reported record hybrid sales, which jumped nearly 22% compared to the previous year, proving that customers are currently preferring a mix of gas and electric power.
