Ford's Big EV Overhaul Sparks Massive Financial Hit

Ford Motor Company just dropped some tough news that's got car lovers and investors buzzing. The auto giant reported a staggering $11.1 billion net loss for the fourth quarter of 2025, its worst showing since the 2008 economic crash. This shakeup in their electric vehicle strategy is the main culprit, and it's raising questions about how traditional carmakers adapt to the green shift.

Ford, headquartered in Dearborn, Michigan, released these figures on February 10, 2026, after the market closed. While their overall revenue hit $45.9 billion for the quarter, beating some expectations, the losses piled up from revamping their EV lineup.

The Model e division, which handles electric vehicles took a heavy blow with costs soaring higher than planned. CEO Jim Farley explained that they're slashing expenses and rethinking production to compete better. This matters because the whole auto world is racing toward EVs to cut emissions and meet new rules. But Ford's stumble shows it's not easy, demand has slowed, and building these cars is pricey.

Last year, their EV sales dipped, and the unit lost billions, forcing tough choices like delaying some models. Farley, who has led since 2020, remains optimistic. He expects a 2026 rebound, driven by streamlined operations and new vehicles. Still, the stock tumbled after the announcement, wiping out gains.

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