You can look at Ford Motor Company’s 2025 financial report in two ways. 

On one hand, the automaker earned $6.8 billion before interest, taxes, and one-time costs. On the other hand, when you subtract those figures, it shows a net loss of more than $8 billion, the largest shortfall in almost 20 years.

Ford CEO Jim Farley focused on the positives in his report to shareholders.

“Ford delivered a strong 2025 in a dynamic and often volatile environment,” Farley said.

Tariffs added to that volatility. Ford says it paid $2 billion in import taxes in 2025. 

EV losses jolt the bottom line

Automotive analyst Paul Eisenstein with Headlight.News says electric vehicles proved very costly.

“Ford wrote off almost $20 billion on its electric vehicle operations,” he says. “That reflects a whole bunch of changes to their EV program.”

Ford ended production of the F-150 Lightning electric pickup truck. It also backed away from plans to convert a factory in Memphis, Tenn. into an EV-only facility.

Eisenstein says Ford has yet to make a profit on EVs but is not abandoning them. He says the company will launch its Universal EV concept at a factory in Louisville, Ky. 

“It’s a radical change in the way you design and build vehicles,” he says. “And if it works, it could lower the cost of EVs substantially.”

Quality is Job 1…or is it?

Farley’s biggest challenge may be improving quality. Ford issued 153 vehicle recalls in 2025, a new industry record. Eisenstein says Ford owners are tired of having multiple recalls on the same vehicle, and often for the same problem.

“This is costing the company billions of dollars and ticking off a lot of customers,” he says.

The blue oval has a silver lining

Ford’s annual earnings statement offered some hope. The company reported record revenue of $187 billion. U.S. sales rose 6% over 2024. And hourly workers will receive individual profit-sharing checks worth about $6800 based on pre-tax earnings.

Eisenstein says net profits or losses can be deceiving.

“The net can be affected by those one-time charges, which can be manipulated to give you a good or bad number, depending on what you feel like you need,” he says. “You want to have a clear sense of what the individual elements in the bottom line are all about.”

Detroit’s automakers have scaled back electric vehicle production due to sluggish sales and other factors.

Benchmark Mineral Intelligence says overall EV sales in the U.S. grew by 1% in 2025. That includes plug-in hybrids.

Political pressure hasn’t helped. President Donald Trump favors internal combustion engines and rolled back his predecessor’s push to build more EVs. He rescinded higher fuel economy standards and tried to block federal funding for EV charging stations.

Congress eliminated the $7,500 tax credit for EV buyers, giving consumers less incentive to purchase one.

Despite that, EV advocates see better days ahead.

EVs enjoy high customer satisfaction

Jennifer Mefford is the director of business development for Powering Michigan’s Future. It’s a partnership between the National Electrical Contractors Association and International Brotherhood of Electrical Workers Local 58.

Mefford says customer satisfaction gives her hope.

“EV owners love their EVs,” she says. “And the technology is very sound and developed.”

Mefford notes that the market has already survived some ups and downs.

“We had a big resurgence when GM launched the Volt, and then the market kind of went flat,” she says.  “I think we’re poised very well because the technology is there, the battery development is there, and the charging infrastructure is there.”

EVs are still visible

Powering Michigan’s Future has a display at the 2026 Detroit Auto Show. Mefford says it’s there to answer people’s questions about electric vehicles. She says the questions most people have are about charging them.

“80% of your charging is going to be done at home,” she says. “What are the cost considerations for that? Do they want to hook into DTE Energy’s charging rates? How does it work when they’re out in public spaces?”

Mefford says Michigan has done a good job building out its EV charging infrastructure.

“It’s all new equipment,” she says. “It’s very reliable and it’s really quite user-friendly.”

In the early days, EVs suffered from limited range. Mefford says that, too, has gotten better.

“You have a group of vehicles in the 240 to 320-mile range,” she says. “I think ranges are always going to get better, batteries are much more efficient, and costs are coming down.”

But Mefford admits Michigan and the U.S. have a long way to go to catch China, where EV sales grew 17% in 2025.