EVs and tariffs become the cause of Ford’s multibillion-dollar losses

Ford reported significant financial losses for 2025, totaling $8.2 billion, marking one of the most challenging periods for the company in the past decade.

These losses reflect deeper structural issues faced by traditional automakers amid the global transition toward electric vehicles and rapidly changing trade policies. The primary driver of Ford’s negative results has been massive investment in electrification. The company is building new battery production facilities, developing dedicated EV platforms, and creating its own software ecosystem. While these initiatives require billions of dollars in upfront spending, EV profitability remains weak due to high battery costs and still-limited consumer demand.

Additional pressure has come from tariffs and ongoing trade conflicts, which have increased component costs and complicated exports to key international markets. Ford has also faced technical challenges, including battery-related incidents and large-scale recalls, resulting in higher legal expenses and reputational damage.

Analysts note that Ford is currently stuck in a transitional phase: its traditional ICE business is gradually losing profitability, while its electric division has yet to reach break-even. This imbalance has created a financial gap that is forcing the company to cut costs, reassess its strategy, and seek partnerships to share development risks.

Despite the losses, Ford remains committed to its transformation strategy, betting on long-term growth in the EV market. The company is counting on government incentives, declining battery prices, and increased production scale to improve margins and restore profitability.