Ford's EV unit loses $1.1 billion in the third quarter as it readies the Fathom
Ford says its Model e electric-vehicle segment lost $1.058 billion before interest and taxes in the third quarter of 2026, a 25 percent improvement on a year earlier, on 34,000 wholesales. The company still expects a Model e loss of about $4 billion for the year, and says the Fathom pickup launches in the fourth quarter of 2027.
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Ford's electric-vehicle business, Model e, lost $1.058 billion before interest and taxes in the third quarter of 2026, according to the company's earnings release filed with the U.S. Securities and Exchange Commission on 28 October. That is a 25 percent smaller loss than the $1.410 billion a year earlier, but it came on far fewer vehicles: Model e wholesales fell 31 percent, from 50,000 to 34,000, and segment revenue fell from $1.8 billion to $1.2 billion. Ford still expects Model e to lose about $4 billion in 2026.
Across the company, Ford reports third-quarter revenue of $49.5 billion, down 2 percent, net income of $2 billion, and adjusted earnings before interest and taxes of $2.7 billion. Adjusted earnings per share were 49 cents. Adjusted measures are Ford's own definitions.
Where the money is made
The release shows how much the petrol, hybrid, and commercial businesses carry the electric one. Ford Blue, the unit for petrol and hybrid vehicles, earned $1.392 billion before interest and taxes. Ford Pro, the commercial-vehicle and fleet services unit, earned $1.7 billion, down 16 percent, which Ford attributes to higher commodity costs and temporary launch costs for Super Duty production at its Oakville plant in Canada.
Over the first nine months, Model e lost $2.754 billion, compared with $3.588 billion a year earlier. Wholesales for the period were 97,000, down 31 percent.
Ford says the segment "continues to optimize first-generation vehicles for profitability while investing in affordable, highly scalable electric vehicles built on the new UEV platform and ramping Ford Energy." UEV is Ford's name for its Universal Electric Vehicle platform.
The outlook
Ford raised the low end of its full-year guidance and now expects adjusted earnings before interest and taxes of $10.5 billion to $11 billion. By segment, it expects Ford Blue to earn about $5.5 billion, Ford Pro about $7 billion, and Ford Credit about $2.8 billion before taxes, and Model e to lose about $4 billion. The company says the guidance does not include the possible effects of a significant escalation of the conflict in the Middle East. These are forecasts and can change.
Chief executive Jim Farley says in the release that the company is "entering a defining phase" of its transformation with the launch of the UEV platform, Ford Energy, a new F-150, and other new vehicles over the next few years. Chief financial officer Sherry House says Ford is on track for its full-year targets, including its warranty and material cost goals.
Fathom and Ford Energy on the call
On the earnings call on 29 October, according to The Motley Fool's transcript, Farley said the Fathom will be the first vehicle on the UEV platform and will be built at Louisville Assembly, where Ford is ending Escape and Corsair production to retool the plant. He said the launch remains on track for the fourth quarter of next year, and described an MSRP under $30,000. The transcript's summary lists a starting MSRP of $28,350. Farley said the truck will have a zonal electrical architecture and Ford's first 48-volt low-voltage system.
Farley also described a separate vehicle: an affordable midsize pickup for international markets launching next year, which he said is expected to have base material costs 20 percent lower than today's Ranger.
On Ford Energy, the unit that will make battery storage products, Farley said the company's battery plant in Kentucky has completed trial runs of electrode mixing, the first step in producing prismatic lithium iron phosphate cells, and that Ford remains on track to bring 20 gigawatt hours of annual capacity online by the end of next year.
Analysis
The Model e loss per vehicle went up even as the total loss came down. Dividing Ford's own figures, the segment lost roughly $31,000 per wholesale unit in the third quarter, against roughly $28,000 a year earlier, because volume fell faster than the loss. That calculation is this desk's, not Ford's. Ford's case is that first-generation EVs are being trimmed and that the economics change with the cheaper UEV vehicles from late 2027. Until then, the company's own guidance shows the EV unit costing about $4 billion this year.
This desk covered the Fathom's home-power features on 28 October. Other third-quarter results on this desk include Rivian, BYD, and Tesla.
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