Ford reported a Q4 net loss as its Model E unit posted a $4.8 billion operating loss. Executives expect the electric vehicle division to lose an additional $4 billion to $4.5 billion in 2026. The company has delayed its EV break-even target until 2029. Ford will record $7 billion in special charges to pivot its strategy toward affordable EV models priced between $30,000 and $35,000.
CEO Jim Farley signaled the end of the subsidy-driven EV era. The company is prioritizing hybrids and partial electrification to navigate rising tariff costs. Despite these challenges, Ford issued a 2026 adjusted EBIT target of $8.0 billion to $10.0 billion. The Ford Pro commercial unit is projected to generate $6.8 billion in EBIT.
Ford shares rose 1.8% in early trading and are currently priced at $14.03, representing a 1.30% gain. The stock is outperforming the broader market during today's session. Strong demand for hybrid vehicles remains a primary driver of the company's optimistic financial outlook.