"When Ford ( NYSE:F) announced a $19.5 billion write-off on its electric vehicle business, shareholders didn't panic. They exhaled. The stock barely flinched, trading near 52-week highs at $13.67, because investors were relieved Ford finally stopped burning cash on a battle it was never equipped to win. The write-off represents 36% of Ford's entire $54.5 billion market cap. That's not a rounding error. That's an admission that everything Ford bet on EVs was fundamentally mispriced from day one."
"The company has lost $13 billion on EVs since 2023 alone, with its Model e division bleeding $1.4 billion in Q3 2025. CFO Sherry House acknowledged in October that "the only practical way to improve the profitability of our Gen 1 vehicles is through one or more of the following: pricing, new cost reductions, and improved fixed cost leverage." Two months later, Ford gave up entirely."
"The Manufacturing Gap Nobody Talks About This isn't a story about whether EVs are the future. It's about Ford's inability to manufacture them profitably while Tesla ( NASDAQ:TSLA) treats the factory itself as a product. Tesla's Shanghai Gigafactory just produced its 4 millionth vehicle with industry-leading efficiency, while Berlin has become Tesla's most efficient plant globally. Ford, meanwhile, is renaming its Tennessee Electric Vehicle Center back to "Tennessee Truck Plant" to build gas-powered trucks instead."
Ford announced a $19.5 billion write-off on its electric vehicle business, equal to 36% of its $54.5 billion market capitalization. The company has lost $13 billion on EVs since 2023, with the Model e division losing $1.4 billion in Q3 2025. Investors reacted calmly, leaving the stock near 52-week highs around $13.67. CFO Sherry House identified pricing, cost reductions, and fixed cost leverage as limited levers to improve Gen 1 profitability. Ford scaled back its EV push, cited manufacturing and profitability gaps versus Tesla, and repurposed facilities toward gas trucks and hybrid strategies.
Read at 24/7 Wall St.
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