According to a Bloomberg report, Farley predicted the share of zero-emission vehicles could fall by half.
Ford Motor Co. (F) CEO Jim Farley reportedly believes that the elimination of federal tax credit on the purchase of electric vehicles and other Trump policies will sharply curtail EV demand in the U.S.
Farley predicted the share of zero-emission vehicles could decline by half, according to a Bloomberg report. ZEVs currently account for 10% of the domestic market.
“I wouldn’t be surprised if EV sales in the U.S. go down to 5%,” Farley said at a conference in Detroit, as reported by Bloomberg. The CEO, however, said the company is looking to add hybrid production to its battery and EV plants, the report noted.
Ford shares traded 1% lower on Tuesday afternoon at the time of writing. On Stocktwits, retail sentiment around the stock stayed within the ‘bullish’ territory, while message volume stayed at ‘high’ levels.
In the second quarter, Ford’s EV segment, known as Model e, saw its operating loss widen to $1.3 billion, pressured by tariffs and ramp-up costs at its new battery plant in Marshall, Michigan.
Ford’s current EV lineup in the U.S. is comprised of just three vehicles: the F-150 Lightning pickup truck, the Mustang Mach-E SUV, and the E-Transit van. This year, through the end of August, the company sold a cumulative 57,888 units of the three models, marking a drop of about 6% from the corresponding period last year, despite a 5.5% increase in internal combustion engine vehicles.
Ford stated last month that it plans to introduce a new group of affordable electric vehicles starting in 2027 to expand its EV lineup. The first in line would be a midsize pickup truck assembled at Ford’s Louisville Assembly Plant with an expected starting price of $30,000, the company added.
F stock is up by about 21% this year and by about 13% over the past 12 months.
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