Ford loses $5.5 billion on EVs in 2025, blames “pesky” customers . . .

Photo above - During World War 2 cars and trucks were modified to run on coal, as an alternative fuel.

The docents and dowagers named Ford must be turning over in their graves right now. Ford Motor Company's CEO – Jim Farley - is presiding over a 50% drop in stock price. From $27 in 2022, when he ascended to the corner office, to $12 today. Ford’s 1 year future “target price” as estimated by Wall Street pro's is a further decline to $11.

How could this happen?

Mr. Farley blames “pesky” customers for not flocking to his $100,000 Ford F150 Lightning pickups (platinum trim). If $100K sounds insane, you can get a less heroic trim EV F150 for only $75,000. See link below. Okay, I can see a couple of problems here, Mr. Farley.

First, somebody in accounting may have told you that EV tax rebates continue forever and would rise from $7,500 to $12,000. As long as the assembly line churning them out was staffed by UAW members. Various people in DC were talking this up, as if they could just print money endlessly.

Second, somebody in Ford's sales department may have misplaced a digit, and overestimated the market size for $100,000 pickups. Electric vehicles are a thing with coastal elites. Those locations have the charging infrastructure. Farmers in Kansas? Not so much. If a farmer runs short on electrons, it could be a long way back to barn to plug in.

So Ford is pivoting to hybrids, a decade after Honda and Toyota figured out this was the answer to range anxiety. Apparently, all new Ford, GM and Ram pickups will be hybrids. It’s not certain if they will still be “flex fuel”, and able to run on 85% ethanol. This was one of the byproducts of the 1992 Energy Policy Act. Almost immediately refineries began churning out more than 1 billion gallons of ethanol a year, as a consequence of government handouts to corn farmers. Even though there are actually almost zero filling stations where you can get E85. E85 capability became a feature, not a bug. on new pickup truck window stickers.

As usual, I’m dissatisfied. I don’t want to throw tax money at farmers to produce ethanol instead of food for my dinner table. I don’t want perpetual tax incentives on $100,000 electric pickup trucks simply because someone covets UAW votes. I don’t want to wake up tomorrow and read that someone else has patented a pickup truck that runs on coal, and there’s a tax incentive on THAT now . . .

Mr. Farley, you’re not the first CEO to get bamboozled by congress, your accountants, and your sales department. But Ford stock HAS declined 50% over the past couple of years. And you're almost 65 years old. Maybe this would be a good time to start retirement planning?

I’m just sayin’ . . .



Ford CEO Admits EV Market Will Be 'Way Smaller' Than Originally Thought

Ford's EV challenges continue: $5.5 billion loss expected in 2025