Ford’s Model e electric vehicle division recorded an operating loss of $1.1 billion in the third quarter of 2026, as lower vehicle sales and revenue continued to weigh on the US automaker’s electric passenger car business. Although the loss narrowed by $300 million compared with the same period last year, the division remains unprofitable.
Model e generated $1.2 billion in revenue between July and September, down 33% from $1.8 billion in the third quarter of 2025. Ford also reported an EBIT loss of $1.1 billion, an improvement of approximately 21% year-on-year.
The division sold around 34,000 battery-electric vehicles during the quarter, compared with approximately 50,000 units in the corresponding period of 2025. This represents a decline of roughly 32%.
Lower EV sales weigh on revenue
The decline in Model e revenue comes after an unusually strong comparison period in 2025, when many US customers brought forward electric vehicle purchases ahead of the expiration of federal EV tax incentives on 30 September 2025.
The Model e division covers Ford’s fully electric passenger vehicles, including the Puma Gen-E, the Explorer produced in Cologne and the Mustang Mach-E. Electric commercial vehicles such as the E-Transit are reported separately under Ford Pro.
The removal of the $7,500 federal tax credit has added pressure to Ford’s electric passenger vehicle business, particularly in the US market.
Ford had already discontinued production of its electric F-150 Lightning pickup in autumn 2025, although remaining vehicles continued to be available through dealerships into 2026. In December 2025, the company also announced $19.5 billion in write-downs, primarily associated with its electric vehicle operations, reflecting adjustments to its expectations for EV market growth and investment returns.
Investment spending contributes to quarterly losses
Ford attributed the increase in its Model e loss compared with the first half of 2026 to higher investment costs for next-generation products and the establishment of its new Ford Energy subsidiary.
The division recorded an EBIT margin of -86.5% in the third quarter, highlighting the gap between its current revenue base and the costs associated with developing and producing electric vehicles.
Ford plans to improve the profitability of its first-generation electric vehicles while accelerating the development and launch of more affordable models based on its Universal EV platform.
The company is also expanding its battery energy storage activities through Ford Energy, which represents an additional area of investment beyond its passenger vehicle business.
Ford maintains full-year loss forecast
For the full year 2026, Ford expects Model e to report an EBIT loss of between $4 billion and $4.5 billion. This compares with a loss of $4.8 billion in 2025.
After the first three quarters of 2026, the division’s cumulative operating loss stands at approximately $3.5 billion. The current result therefore remains broadly consistent with the company’s full-year forecast.
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Model e continues to represent a relatively small part of Ford’s overall business. The automaker reported total company revenue of $49.5 billion in the first quarter of 2026, alongside adjusted EBIT of $2.7 billion.
The latest results underline the financial challenges facing Ford’s electric passenger vehicle operations, even as the company continues investing in lower-cost EV platforms and battery energy storage.