Ford predicts losses of up to $5.5 billion on electric cars by 2025

Ford Motor on Wednesday projected losses of up to $5.5 billion in its electric vehicle and software operations for this year, a similar loss to last year and a sign of severe difficulties in cutting costs on battery-powered models.

The automaker forecast overall profitability for 2025, but even that figure would be down from 2024. For the fourth quarter, it reported a net profit of $1.8 billion dollars, compared to a loss of $500 million in the same quarter last year, as pension-related costs affected results.

Ford CEO Jim Farley has been aiming to follow up on an uneven 2024 with more consistent performance, in a year that is already shaping up to be filled with ups and downs in American politics.

The Dearborn, Michigan-based automaker is working to overcome persistent quality problems and boost its stock price, which fell 18% last year. It now faces uncertainty over President Trump’s threat to impose tariffs on Mexico and Canada. If implemented, the measures would increase the automaker’s raw material costs and likely affect sales demand.

Farley told analysts during a phone call that Ford could withstand a few weeks of tariffs, but that if the 25% tariffs on Mexico and Canada are extended, “it would have a huge impact on our industry, with billions of dollars in industry profits eliminated and an adverse effect on U.S. jobs.”

Farley added that he believes Trump is looking to strengthen the auto industry, not weaken it.