Ford targets Model e profitability by 2029 amid EV strategy reset

The automaker is shifting its focus to producing affordable, high-volume electric vehicles (EVs) and implementing cost reductions as it works to narrow its losses.

On the Dash:

• Ford’s shift toward affordable EVs under $40,000 could improve showroom traffic and volume opportunities.
• Lower-cost battery platforms and extended-range EVs may ease consumer range anxiety and inventory risk.
• Software, autonomy, and energy products are becoming core profit drivers dealers must prepare to retail and service.

Ford has noted that its Model e electric vehicle division will reach profitability by 2029, marking a strategic shift toward affordable, high-volume EVs and lower battery costs after years of multibillion-dollar losses.

The Dearborn automaker’s EV unit lost $4.8 billion last year, though executives said losses are narrowing. Ford expects Model e to post an adjusted operating loss of between $4 billion and $4.5 billion this year, an improvement driven by cost reductions, lower U.S. EV volumes, and restructuring efforts. 

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Notably, the company is targeting an 8% adjusted operating margin companywide by 2029, up from 3.6% in 2025.

CEO Jim Farley stated the company’s EV focus is now on high-volume, affordable vehicles. The first U.S. product on the new Universal EV Platform will be a midsize electric truck, launching next year at the Louisville Assembly Plant with a starting price of $30,000.

The new platform reduces parts by 20% to cut costs, boost quality, and accelerate production.

Ford is also transitioning to lithium-iron-phosphate batteries, which are less expensive than nickel-manganese-cobalt batteries. The cells will be produced at BlueOval Battery Park Michigan, using licensed technology from China-based CATL. Executives said smaller vehicles requiring fewer battery cells will improve margins, prompting the company to cancel higher-cost EV programs such as three-row SUVs and next-generation large electric trucks.

In addition to vehicle sales, Ford expects revenue growth from software, advanced driver-assist technology, and its Ford Energy business, which will produce stationary storage systems for industrial customers. Extended-range EVs, including a next-generation F-150 Lightning variant, are also expected to support profitability.

Ford plans to allocate roughly one-quarter of its capital expenditures to Model e, with total company spending projected between $9.5 billion and $10.5 billion this year.