Ford Reassesses EV Strategy as Market Demand Falls Short of Expectations

Ford Motor Company is recalibrating its electric vehicle ambitions after acknowledging a significant miscalculation in market demand. CEO Jim Farley and former CEO Mark Fields both concede that automakers, including Ford, overestimated consumer adoption rates for EVs. "The automakers really went full bore in putting in capacity for EVs," Fields noted. "They didn't have a good discussion about what it WOULD take to get consumers to buy these products."

The reassessment comes as federal tax credits for EV purchases face potential elimination—a factor Farley cites as further shrinking the addressable market. Despite these headwinds, Ford shares showed resilience, edging up slightly in Wednesday trading.

Rather than retreating, Ford appears poised to compete more aggressively in the constrained EV space. The company is preparing strategic price adjustments—a MOVE that suggests a pivot toward volume-driven growth in a market that's developing slower than anticipated.