Ford CEO admits 'the customer has spoken' amid company's worst performance slip since 2008 financial crisis: 'It's a big miss'

After seeing a noticeable decline in EV sales in 2025, Ford Motor Company promised a drastic shift in priorities moving forward.

What's happening?

Rather than putting its focus on expensive, all-electric versions of iconic models like the Mustang and F-150, Ford will emphasize more affordable EV models and hybrids, Business Insider reported. 

"So I think the customer has spoken," Jim Farley, Ford's CEO, said on an earnings call with investors, per Business Insider. "That's the punchline." 

While Ford's vehicle sales overall rose by 6% in 2025, its EVs saw a noticeable decline of nearly 15%, according to Electrek, with Farley pointing to high price points as the primary explanation. In total, due in part to significant investment in the EV future, Ford recorded net losses of $11.1 billion in the fourth quarter of 2025 alone, its worst mark since the 2008 financial crisis. 

In response, Ford will not abandon its EV efforts altogether and waste its investment. Instead, the company said it would pivot from more expensive EVs to more affordable models. Ford announced plans to release five new vehicles all starting at below $40,000, Electrek reported. 

While Ford will continue to make some all-electric vehicles, the automaker will also place an increased emphasis on gas-electric hybrids and plug-in hybrids, indicating its investment may still yet pay dividends despite overestimating customer interest in premium EV offerings under the Ford umbrella.

"On paper, it's a big miss, but I don't think it's a big deal," an analyst for The Motley Fool, John Rosevear, told Business Insider of the impact to Ford, noting optimism that the future looked bright overall. 

Why is it important?

Ford's struggles in the EV market have highlighted the challenges of transitioning from internal-combustion engines to electric vehicles, particularly for legacy automakers. 

However, global EV sales as a whole have continued to increase every year, and Ford competitor General Motors saw sales of its EVs increase 48% in 2025, according to Electrek — meaning the customer interest is there, but just like with any car, a vehicle itself must be appealing on features and price to get enough people to buy it.

Still, EV sales in the U.S. continue to face strong headwinds, including from the current administration's policies. In 2025, a federal tax credit of $7,500 for new EVs was terminated years earlier than previously planned, and the U.S. continues to lag behind in building EV infrastructure like charging stations.

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In response, 16 states and the District of Columbia have sued the administration seeking the release of $2 billion in funding previously earmarked for EV infrastructure. 

What's being done about it?

In order to get its EV division back on track, Ford plans to focus on more affordable, more practical models that fit a wider range of budgets and consumer needs. As Farley acknowledged, focusing on high-end, expensive models to launch the company's EV efforts appeared to have been a mistake.

Despite the recent headwinds, experts have forecast that the overall EV market in the U.S. will continue to grow in the coming years — particularly as customers recognize the value of having an EV battery that can supply power to a home in a power outage, as a Ford F-150 did for over a week during a recent ice storm in Tennessee.

"2025 unfolded largely as anticipated, with changes to federal EV incentives reshaping the demand patterns that drove record Q3 sales," said Stephanie Valdez Streaty of Cox Automotive. "Rather than signaling a retreat from electrification, this shift marks a structural transition toward a market increasingly driven by consumer choice."

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