Ford closed 2024 with a mixed financial performance, but growing losses in its electric vehicle (EV) division has overshadowed a promising start to 2025 sales. While the company posted strong EV sales in January, it also forecasted continued financial struggles for its Model e division, with projected losses reaching as high as $5.5 billion for the year.
EV Division Drags Down Ford’s Earnings
Ford’s fourth-quarter earnings report highlighted a troubling trend for its EV business. Despite revenue climbing to $48.2 billion—beating Wall Street expectations—the Model e segment continued to post substantial losses. In Q4 alone, Ford lost approximately $1.4 billion on its EV lineup, bringing the total 2024 Model e losses to a whopping $5.1 billion.
The future isn’t looking too bright either, with the company now forecasting between $5 billion and $5.5 billion in losses for 2025, leading to concerns over Ford’s ability to turn its EV business profitable.
CEO Jim Farley remains optimistic, stating, “Ford is becoming a fundamentally stronger company,” while emphasizing the importance of long-term investments in battery production and software-driven features.
January Sales Paint a Brighter Picture
Despite its financial struggles, Ford’s EV sales showed signs of momentum at the beginning of 2025. The company reported record-breaking January EV sales, with total deliveries up 21.2% year-over-year (YoY). Leading the charge was the Mustang Mach-E, which saw an impressive 173% increase in sales, reaching 3,529 units sold for the month. This made it the second-best-selling electric SUV in the U.S., trailing only the Tesla Model Y.
Meanwhile, the F-150 Lightning pickup truck posted a more modest 7.6% increase in retail sales, while the E-Transit van suffered a significant 80% decline. Hybrid sales, on the other hand, proved to be a strong point for Ford, with the F-150 Hybrid selling 4,368 units—an increase of 38.2% year-over-year.
In total, Ford’s electrified vehicle sales (including hybrids, plug-in hybrids, and EVs) climbed nearly 20% to 18,961 units in January.
In response to these challenges, Ford is shifting its focus toward hybrids as a more immediate growth area. Hybrid sales nearly doubled compared to EV sales in 2024, and the automaker is leaning into this trend by expanding its hybrid lineup across multiple vehicle segments.
