Ford’s Q1 Profit Plummets 64% as EV Struggles and Tariffs Hit Hard

Ford Motor Company’s first-quarter profit nosedived 64%, dropping to $471 million from $1.3 billion a year earlier, as its electric vehicle (EV) division faltered and tariff-related costs loomed large, according to a Wall Street Journal report. The automaker also withdrew its profit forecast for 2025, citing uncertainty from President Trump’s tariffs, sending shockwaves through the EV industry and leaving enthusiasts and investors on edge.

Tariffs Take a Toll on Ford’s Bottom Line

Ford expected tariff-related costs to slash about $1.5 billion from its adjusted pretax earnings—a hefty hit for an industry already navigating supply chain challenges. Automakers like General Motors and Tesla are also feeling the pinch, with GM estimating a $5 billion earnings cut due to tariffs. Ford’s Chief Financial Officer, Sherry House, told reporters, “About 80% of the company’s vehicles sold in the U.S. are assembled in the country,” but many parts remain vulnerable to import taxes. To dodge tariffs, Ford paused exports of U.S.-made vehicles to China and halted imports of the Lincoln Nautilus from China into the U.S., a move that could disrupt supply for American EV buyers.

EV Losses Shrink but Challenges Persist

Ford’s electric-vehicle arm, a key focus for EV enthusiasts, posted a $1.3 billion loss in Q1—down from $1.5 billion a year ago—thanks to lower material costs and higher selling prices. Still, the division’s unprofitability remains a sore spot. Revenue fell to $40.7 billion from $42.8 billion in Q1 2024, and wholesale deliveries dropped 6% to 971,000 vehicles, partly due to paused production of some models. For EV owners, this could mean longer wait times for popular models like the Mustang Mach-E or F-150 Lightning, as Ford prioritizes cost-cutting over expansion.

Industry-Wide Slowdown Looms

The auto industry faces a grim 2025, with sales expected to cool as consumers, spooked by tariffs, rush to dealerships now rather than later. Ford initially projected vehicle prices would drop from record highs, but Trump’s tariffs flipped that script. House noted, “We now expect prices to inch higher by the summer and for the pace of sales to slow.” This shift could hit EV buyers hard, as higher prices might push electric models out of reach for budget-conscious drivers, slowing the transition to sustainable transport.

EVXL’s Take: A Bumpy Road Ahead for EV Dreams

Ford’s struggles highlight a harsh reality for EV enthusiasts: the road to electrification is getting rockier. Tariffs, combined with a slowing market, could stall progress just as EVs gain traction. For drivers dreaming of a sleek, electric F-150 Lightning—already a standout with its 320-mile range and 775 lb-ft of torque—this news stings. Ford’s focus on slashing costs might mean fewer innovations or delayed releases, leaving EV fans waiting longer for the tech they crave. Still, there’s a silver lining: Ford remains committed to hitting $7 billion to $8.5 billion in adjusted pretax earnings for the year, tariffs be damned. As House put it, “We are focused on managing what we control.” For now, EV owners might need to buckle up—and maybe hold off on that new Ford EV until the dust settles.