Ford Model e EV Division Losses Could Hit $4.5B in 2026

Ford Motor Company expects its electric vehicle division, Ford Model e, to post another multibillion-dollar loss in 2026, extending a stretch of heavy red ink as the company pivots toward lower-cost EVs. Executives said losses could reach as much as $4.5 billion this year, even as restructuring efforts begin to reduce first-generation product costs.

Ford projects up to $4.5B loss for Model e

During Ford’s fourth-quarter 2025 earnings call, CFO Sherry House outlined the outlook for the EV unit.

“We expect losses of $4 billion to $4.5 billion for Ford Model e. This reflects about $1.6 billion of improvement in Gen 1 products driven by lower U.S. volume and cost savings from restructuring the business,” House said.

She added that those gains will be offset by higher costs tied to the next wave of products, according to Ford Authority.

“These savings will be partially offset by around $600 million in higher Gen 2 costs as we near the launch of LFP batteries in Marshall, Michigan and our UEV platform in Kentucky, along with roughly $400 million in startup costs for Ford Energy,” House said.

Ford continues to target breakeven for Model e in 2029.

Reset centers on lower-cost EV platform

Ford has been repositioning its EV strategy after spending heavily on early products such as the Mustang Mach-E and F-150 Lightning. The company is now focusing on more affordable vehicles built on its new Universal EV Platform, with LFP battery production planned in Michigan.

Executives have acknowledged that the transition has been expensive. Ford previously scrapped plans for two all-electric three-row crossovers, a decision that cost hundreds of millions of dollars. The company has also expanded hybrid offerings as it recalibrates its EV roadmap.

“The team is aggressively working on additional Gen 1 cost reductions and ways to further optimize the market equations in the U.S. and Europe,” House said.

For now, Ford’s EV division remains in investment mode. Profitability will depend on whether its next-generation platform can deliver lower costs and stronger demand over the next several years.

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