Ford’s electric vehicle division, Model e, has demonstrated remarkable growth in the first quarter of 2025, reporting a 200% increase in sales and a significant reduction in losses. The company’s turnover rose, with Model e generating $1.2 billion in revenue, a substantial leap from just $0.1 billion a year ago.
Despite this progress, Ford still reported a loss of $850 million for the division, although this marks an improvement over last year’s $1.3 billion EBIT loss.
See also: Ford Fiesta Could Return as Affordable EV Through Volkswagen Partnership
Sales of Ford’s electric vehicles surged by 213%, growing from approximately 10,000 units in Q1 2024 to 31,000 units in the same period this year. The growth is largely attributed to recent European product launches, including the electric Capri and Explorer models, which are now being manufactured in Cologne. Additionally, reductions in material costs and an increase in vehicle prices have also contributed to the division’s improved financials.
Overall, Ford’s revenue for the first quarter of 2025 fell slightly to $40.7 billion, a 5% decline from the previous year. The company’s combustion engine division, Ford Blue, generated $21 billion, while its commercial vehicle segment, Ford Pro, contributed $15.2 billion.
See also: Ford Unveils Breakthrough in Lithium Manganese Rich Battery Chemistry for Future EVs
Despite a drop in adjusted EBIT to $1 billion, down 63% year-on-year, the results for Model e indicate positive momentum as the company focuses on improving gross margins and managing investments in battery facilities and next-generation products.
Looking ahead, Ford faces challenges from U.S. tariff policies, which are expected to negatively impact its EBIT by $1.5 billion in 2025, according to the company’s management. Additionally, Ford recently paused its program to develop its next-generation electronics architecture, which was originally intended to power smart vehicles. The suspension of this project could have financial implications for the company’s future balance sheets.