After seeing a significant decline in electric vehicle sales through 2025, Ford Motor Co. has pledged a dramatic shift in its priorities going forward.
Instead of focusing on expensive all-electric iconic models like the Mustang and F-150, Ford will focus on more affordable electric vehicles and hybrid models, Business Insider reports.
“So I think customers have spoken,” Ford CEO Jim Farley said during an earnings call with investors, according to Business Insider. “That’s the punchline.”
According to Electrek, while Ford’s overall vehicle sales will increase by 6% in 2025, its electric vehicle sales will significantly decline by nearly 15%. Farley pointed out that the main reason is high prices. Overall, Ford recorded a net loss of $11.1 billion in the fourth quarter of 2025 alone, its worst record since the 2008 financial crisis, as it invested heavily in its electric vehicle future.
In response, Ford won’t abandon its electric vehicle efforts entirely and squander its investment. Instead, the company said it will shift from more expensive electric cars to more affordable models. According to Electrek, Ford announced plans to launch five new vehicles, all starting at less than $40,000.
While Ford will continue to build some all-electric vehicles, the automaker will also place a greater emphasis on gasoline-electric hybrids and plug-in hybrids, a sign that its investment may still pay dividends despite overestimating customer interest in Ford’s premium electric vehicle offerings.
“On the surface, it looks like a big miss, but I don’t think it’s a big deal,” Motley Fool analyst John Rosevear told Business Insider, noting that Ford’s future looks bright overall.
Ford’s woes in the EV market highlight the challenges of transitioning from combustion-engine vehicles to electric vehicles, especially for legacy automakers.
However, global EV sales overall continue to grow every year, and according to Electrek, EV sales from Ford rival General Motors will grow 48% by 2025, which means customer interest is there, but like any car, the car itself must be attractive in terms of features and price to attract enough people to buy it.
Still, EV sales in the U.S. face strong headwinds, including from current administration policies. A $7,500 federal tax credit for new electric vehicles will end in 2025 years earlier than originally planned, and the U.S. continues to lag behind in building EV infrastructure such as charging stations.
