Ford’s Model e division makes only fully electric cars like the Puma Gen-E, Explorer, and Mustang Mach-E. It does not handle electric vans such as the E-Transit, because those are managed by another division called Ford Pro. Selling electric cars in the US has become harder, especially after the government stopped giving the $7,500 tax credit to buyers in September 2025.
This context helps clarify the quarterly figures now reported. Specifically, Ford’s Model e division generated revenue of $1.2 billion for the period from January to March 2026 – roughly the same as the previous year. During this time, sales of electric vehicles rose from around 31,000 to approximately 34,000 units. While Ford increased volumes, it generated the same revenue with 10 per cent more battery-electric cars than a year earlier. This suggests that the average selling price per electric vehicle has declined, potentially indicating a higher proportion of lower-priced models in Europe compared to the more expensive US models.
In terms of operating results under the EBIT method, Model e posted a loss of $777 million this quarter. For comparison, the loss in the first quarter of 2025 was $849 million. The EBIT margin also improved slightly by 5.3 percentage points to -63.1 per cent. However, this still means Ford incurred a loss of nearly $23,000 for every electric vehicle sold.
Looking ahead, Ford aims to improve margins on its first-generation EVs while preparing for the launch of more affordable, highly scalable electric vehicles on the Ford Universal EV platform (UEV), announced last August. It is also expanding its new battery storage business, Ford Energy.
For the full year, Ford expects an EBIT loss of $4.0 to $4.5 billion for Model e, an improvement over its $4.8 billion loss in 2025. However, the EBIT figures Ford reports for its divisions like Model e – both quarterly and annually – still appear more favourable than reality, as they do not yet account for overhead costs and interest expenses associated with this capital-intensive segment.
Right now, the Model e division is still a small part of Ford’s overall business. In the first quarter, Ford made total revenue of $43.3 billion, with a net profit of $2.5 billion and an adjusted EBIT of $3.5 billion. In terms of sales volume, the traditional fuel-powered vehicle division sold 584,000 vehicles, while the commercial vehicle division, which includes vans of all types, sold 316,000 vehicles.
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