Ford Motor Co. F shares declined 5% in premarket trading on Thursday after the company said that it expects $5 billion to $5.5 billion in losses in its EV segment this year, in line with the loss recorded last year.
What Happened: The company reported its fourth quarter and full-year 2024 results on Wednesday and said that it expects overall full-year adjusted EBIT of $7 billion to $8 billion for 2025, lower than the adjusted EBIT of $10.2 billion reported for 2024. The company pinned the disappointing forecast on headwinds related to market factors.
For the EV segment called Model e, the company reported a full-year EBIT loss of $5.08 billion. The company sees losses in the same range for 2025 as well.
Ford CEO Jim Farley addressed the possible impact of increased tariffs on imports from Mexico, Canada, and China on Wednesday in the earnings call. While a few weeks of tariffs will be manageable, prolonged 25% tariffs will have a huge impact on the auto industry and mean higher prices for customers, he said.
Why It Matters: President Donald Trump announced tariffs of 25% on goods from Mexico and Canada last weekend, possibly impacting automakers including General Motors and Ford whose supply chains rely on these regions. Trump, however, delayed the imposition of the tariffs for a month after a discussion with the countries’ leaders on Monday.
Late last year, Ford said that it is killing its plans to build a three-row electric SUV, initially slated for production in 2025. The company also postponed its plans for a new electric version of its F-150 pickup to 2027.
However, Farley has previously said that it has a "skunkworks" team in California working on a low-cost EV platform to compete against Chinese EV manufacturers like BYD Co. known for their low-priced EV offerings.
Check out more of Benzinga's Future Of Mobility coverage by following this link.
Read Next:
Photo courtesy: Shutterstock
© 2025 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.
