Ford recorded $5 billion losses in electric vehicles in 2024 and anticipates new models.

Ford has recorded a loss of $5.1 billion in its electric vehicle and software business in 2024, an increase from the $4.7 billion loss it experienced the previous year. The company does not expect relief in its financial situation this year, as it estimates that losses in this segment could rise to $5.5 billion. Despite this, in its fourth-quarter and full-year earnings report, Ford exceeded market expectations.

This forecast of a challenging year is attributed to what the company refers to as "headwinds related to market factors," highlighting the difficulties it still faces in adjusting its electric vehicle business. Nevertheless, Ford reported cost improvements of $1.4 billion from its Model e division.

On the other hand, Ford's gasoline vehicles continue to perform well and generate sufficient revenue, allowing the manufacturer to close the year with profits. Financially, the company ended the year with a net income of $5.9 billion and adjusted earnings of $10.2 billion.

However, Ford warned that its revenues could fall by at least $2 billion in 2025 due to costs associated with the launch of new models and declining car prices. Additionally, the company has not considered potential increases in costs due to former President Donald Trump's threat to impose a 25 percent tariff on imports from Mexico and Canada, although a pause in such tariffs was recently requested. The elimination of incentives for electric vehicles enacted during the