On the Dash:
- Ford’s shift toward affordable EVs under $40,000 could improve showroom traffic and volume opportunities.
- Lower-cost battery platforms and extended-range EVs may ease consumer range anxiety and inventory risk.
- Software, autonomy, and energy products are becoming core profit drivers dealers must prepare to retail and service.
Ford has noted that its Model e electric vehicle division will reach profitability by 2029, marking a strategic shift toward affordable, high-volume EVs and lower battery costs after years of multibillion-dollar losses.
The Dearborn automaker’s EV unit lost $4.8 billion last year, though executives said losses are narrowing. Ford expects Model e to post an adjusted operating loss of between $4 billion and $4.5 billion this year, an improvement driven by cost reductions, lower U.S. EV volumes, and restructuring efforts.
Notably, the company is targeting an 8% adjusted operating margin companywide by 2029, up from 3.6% in 2025.
CEO Jim Farley stated the company’s EV focus is now on high-volume, affordable vehicles. The first U.S. product on the new Universal EV Platform will be a midsize electric truck, launching next year at the Louisville Assembly Plant with a starting price of $30,000.
The new platform reduces parts by 20% to cut costs, boost quality, and accelerate production.
Ford is also transitioning to lithium-iron-phosphate batteries, which are less expensive than nickel-manganese-cobalt batteries. The cells will be produced at BlueOval Battery Park Michigan, using licensed technology from China-based CATL. Executives said smaller vehicles requiring fewer battery cells will improve margins, prompting the company to cancel higher-cost EV programs such as three-row SUVs and next-generation large electric trucks.
In addition to vehicle sales, Ford expects revenue growth from software, advanced driver-assist technology, and its Ford Energy business, which will produce stationary storage systems for industrial customers. Extended-range EVs, including a next-generation F-150 Lightning variant, are also expected to support profitability.
Ford plans to allocate roughly one-quarter of its capital expenditures to Model e, with total company spending projected between $9.5 billion and $10.5 billion this year.
