Ford’s Model e electric-vehicle business is still losing billions: it reported a $4.806 billion EBIT loss for 2025, down from $5.105 billion in 2024. Ford’s July 2026 outlook projected another loss of about $4.0 billion for 2026. The improvement is real but limited; it does not mean Model e is profitable. Ford is also changing its investment and product strategy, with management targeting Model e profitability in 2029.
How much is Ford losing on EVs?
Ford reported a $4.806 billion EBIT loss for Model e in 2025, compared with a $5.105 billion loss in 2024, according to its 2025 filing. EBIT is an operating-performance measure; these figures describe the segment’s reported annual loss, not a per-vehicle loss.
Model e generated $6.670 billion in revenue and recorded 178,000 wholesale units in 2025. Revenue and volume give scale to the business, but they do not by themselves show whether each vehicle was profitable.
How to understand the $8.1 billion impairment
Ford also recorded an $8.1 billion pre-tax impairment charge in the fourth quarter of 2025, tied to Model e long-lived assets amid EV-market challenges and Ford’s strategic decisions. This is distinct from the segment’s $4.806 billion full-year EBIT loss. It should not be added to that figure and described as the annual operating loss.
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What changed in 2026?
In Q2 2026, Model e reported a $919 million EBIT loss, an improvement of $410 million year over year, with a negative 89.6% EBIT margin. Ford’s July 2026 full-year forecast called for an approximately $4.0 billion Model e loss and included about $1.0 billion in incremental investment for the Universal EV platform and Ford Energy. These are quarterly results and company guidance, respectively—not evidence that the segment has reached profitability. Ford’s Q2 2026 results and outlook.
The loss forecast sits alongside stronger company-level guidance. Ford revised its 2026 adjusted EBIT outlook to $10.0 billion–$11.0 billion and adjusted free cash flow outlook to $6.0 billion–$7.0 billion. The company cited assumptions and offsets that included material and warranty savings and a net year-over-year Novelis-related tailwind. These are forecasts, not guaranteed results, and company-wide guidance includes Ford’s businesses beyond Model e. Ford’s revised 2026 outlook.
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What is Ford changing about its EV strategy?
In December 2025, Ford said it would put more emphasis on trucks, hybrids, affordable EVs, and battery energy storage. The shift reflects a changed investment and product roadmap rather than a declaration that Ford is abandoning EVs. Ford also said it expected about $19.5 billion in special items tied to its EV-related strategy changes. Ford’s strategy announcement.
Independent reader supportYour contribution helps us test, update, and keep practical guides available for everyone.When does Ford expect its EV business to become profitable?
Ford management’s stated target is for Model e to reach profitability by 2029, with improvement beginning in 2026. That is a company target, not a realized result or an independently validated prediction. The approximately $4.0 billion loss forecast for 2026 makes clear that Ford still expects substantial losses before that target horizon.
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What the numbers say—and what they do not
- The annual loss narrowed: Model e’s reported EBIT loss was smaller in 2025 than in 2024.
- The business remained deeply unprofitable: Ford forecast another multibillion-dollar Model e loss for 2026.
- The impairment is a separate accounting charge: It is not interchangeable with the annual segment EBIT result.
- The strategy is changing: Ford is reallocating emphasis across trucks, hybrids, affordable EVs, and energy storage while continuing investment in its EV platform.
- The 2029 goal remains forward-looking: It depends on future execution and conditions that the cited figures do not establish.
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