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Ford Adjusts EV Strategy for Future Model Growth

As Ford works to improve EV profitability, future buyers can expect new options like the 2028 Fathom electric pickup.

Updated on Oct. 29, 2026 in Electric Vehicles

Isometric editorial illustration of a modular electric vehicle chassis with battery and suspension components on a factory floor.
Ford reported a $1.1 billion loss for its Model e division as the company restructures its electric vehicle development operations. AI Illustration. Upload story photo >

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Ford's dedicated EV division, Model e, reported a $1.1 billion loss for the third quarter of 2026 ending September 30. Despite this quarterly shortfall, the company saw a 25% year-over-year improvement in EV losses as it restructures operations.

Why it matters

The company is navigating a difficult transition period marked by the end of F-150 Lightning production and lower Mustang Mach-E volumes, which led to a 31% revenue decline for the division. Streamlining development and integrating hardware with software are central to Ford's plan to reach break-even status by 2029.

Model e revenue totaled $1.2 billion for the quarter, while the division projects a $4 billion total loss for 2026. These figures contrast with Ford’s expected total company profit of $10.5 billion to $11 billion for the same year.

The players

Ford

An American automotive manufacturer known for producing trucks and SUVs with a century-long history in the U.S. market.

The details

Ford is currently retooling its electric business by grouping EV production with software-defined vehicle operations to prioritize capital efficiency. This strategy aims to coordinate hardware and software development more effectively as the automaker prepares for future model rollouts. While production of the F-150 Lightning ended in late 2025, the manufacturer is actively working on new platforms like the Fathom electric pickup scheduled for 2028.

Timeline

  1. 2022: Ford established the Model e division.

  2. Late 2025: Production of the F-150 Lightning ended.

  3. Q3 2026: The Model e division reported a $1.1 billion loss.

  4. 2027: The F-150 Lightning is scheduled to return as an extended-range electric vehicle.

  5. 2029: Ford expects its EV business to break even.

The Home Front

The shifting strategy for the F-150 Lightning reflects a broader industry trend of adjusting production timelines to meet changing electric vehicle demand. Ford’s current focus on structural cost reduction is a direct response to the capital-intensive nature of transitioning legacy fleets to electric power.

Prospective buyers interested in Ford's electric lineup should watch for the 2027 return of the F-150 Lightning as an extended-range vehicle. If you are shopping for a midsize electric pickup, keep the upcoming 2028 Fathom on your radar, which features a targeted starting price of $28,350.

The takeaway

Ford's focus on future models like the 2028 Fathom aims to lower the barrier to entry for electric pickup owners. If you are considering an electric vehicle, track the transition of your preferred model as automakers adjust their production roadmaps to improve long-term viability.

Further reading

Learn more about the latest developments in the market by visiting our Electric Vehicles section.

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Do you trust that legacy automakers will eventually make electric vehicles profitable for the mass market?