Ford's EV Strategy Falters as Sales Plummet and Competition Surges

Ford Motor Company is grappling with a significant contraction in its electric vehicle (EV) business, marked by a sharp decline in first-quarter sales and a strategic retreat from high-end projects. The company is now navigating a market where the removal of the $7,500 federal EV tax incentive has forced manufacturers to prioritize affordability and branding over government-subsidized growth. This transition follows a period of heavy financial strain, including a nearly $20 billion charge recorded by Ford toward the end of 2025. The company now anticipates that its EV division will not reach a break-even point until approximately 2029. First-quarter data reveals a stark competitive shift. Ford sold 6,860 EVs, representing a 70% year-over-year decrease. In contrast, Toyota's bZ model alone surpassed Ford's total volume with over 10,000 units sold, a 79% increase. Other competitors, including General Motors' Cadillac and Chevrolet brands, as well as Hyundai, also reported higher EV sales volumes than Ford. The broader U.S. EV market is experiencing a cooling trend, with total sales dropping 27% in the first quarter compared to the previous year. Market share fell to 5.8%, a significant drop from the 10.6% peak seen in the third quarter of 2025. Tesla continues to maintain a dominant position, accounting for 54% of total U.S. EV sales. In response, Ford is pivoting its strategy toward more affordable electric vehicles and hybrids, pushing back several high-end EV projects until 2028. The company plans to launch a $30,000 mid-size electric pickup on its upcoming Universal EV Platform next year in an effort to regain lost market share.