“Unresolvable.”
That’s how Ford’s CEO described the challenges of mass marketing a large scale pickup truck or SUV in the present electric car market — even as the Big 3 automaker braces for billions more in losses, primarily in its electric division.
“For larger retail, electric utilities, the economics are unresolvable,” Jim Farley said on a conference call. “These customers have very demanding use cases for an electric vehicle. They tow, they go off-road, they take long road trips. These vehicles have worse aerodynamics and they’re very heavy, which means very large and expensive batteries.”
The company’s Model-e division, which focuses on battery-electric vehicles, is projected to lose as much as USD$5.5 billion in 2025, exceeding last year’s record $5.1 billion loss.
Overall, the carmaker only sold 105,000 electric cars last year compared to almost 5 million various gas powered vehicles in its consumer and commercial divisions. It had previously planned to sell about 600,000 EVs annually by 2025.
Farley offered a stark assessment of the economic feasibility of large electric SUVs and trucks, warning that the high costs of massive battery packs make them an unviable business case for most retail customers.
Apart from the fact that buyers just don’t want them.
That’s why the company is pivoting away from large all-electric utility vehicles, such as an electric Ford Expedition, in favour of small and medium-sized EVs that are more cost-effective.
Ford has already scrapped plans for a three-row electric SUV, citing the cost and complexity of developing battery packs that exceed 180 kWh. That challenge has plagued other automakers as well, with high-end electric trucks from Tesla, General Motors, and others requiring enormous and expensive battery packs while delivering lack-lustre efficiency.
Not to mention a price tag to match.
The 2025 Chevy Silverado EV starts at USD$70,000, the Tesla Cybertruck begins at $79,990, and the GMC Sierra EV is priced at $92,000. The GMC Hummer EV, equipped with a 212-kWh power pack, has been criticized for its poor range efficiency.
Despite the initial hype surrounding electric trucks, sales have struggled. Tesla’s Cybertruck, once rumoured to have over a million reservations, sold just 38,965 units in 2024 — far below expectations. Ford’s better regarded F-150 Lightning, while seeing modest sales growth, has also seen repeated production cuts due to weak demand.
But the challenges extend beyond the high costs of making batteries. The company is bracing for the impact of potential new tariffs on Mexican and Canadian imports under president Donald Trump.
Farley said a 25% tariff would cost Ford “billions and billions” and result in widespread industry layoffs. He urged Trump to adopt a more “balanced” trade policy that doesn’t disproportionately harm North American automakers while giving foreign competitors an advantage.
“There are millions of vehicles coming into our country that aren’t subject to these incremental tariffs,” Farley said. “We can’t just cherry-pick one place or the other because this is a bonanza for our import competitors.”
With fully electric large SUVs and trucks proving to be uneconomical, Ford is turning to extended-range electric vehicles (EREVs) and hybrids to maintain profitability. EREVs function like EVs but include a small gas-powered generator to recharge the battery, extending range beyond 700 miles while still allowing for mostly electric driving.
However, those models won’t arrive until 2027, leaving Ford in a precarious position as it struggles with profitability.
Shares of Ford fell 5.2% after the comments, reflecting investor concerns over the company’s profitability outlook and uncertainty surrounding Trump’s trade policies. Meanwhile, Ford’s stock has lagged behind General Motors, which saw a 48% surge last year.
