Ford Motor Co. (NYSE:F) shared that it anticipates over $7 billion in EV-related charges in 2026 and 2027 amid a strategy pivot at the company's fourth-quarter earnings call.



<h2>EV-Related Charges Continue To Hurt Ford</h2>



Speaking to investors on Tuesday, Ford Chief Financial Officer Sherry House shared that the automaker will be rejigging its &#34;EV portfolio and assets,&#34; as well as launching newer multi-energy platforms. &#34;In 2026 and 2027, we expect to record about $7 billion in charges related to our updated EV strategy,&#34; House shared with investors.



House also said that the company's Model E, which is Ford's dedicated EV division, expects to record &#34;losses of $4 billion to $4.5 billion&#34; this year. &#34;We continue to target Model E reaching breakeven in 2029,&#34; House said.



Ford CEO Jim Farley also reiterated affordable EV plans, saying that the company's Universal EV Platform would help drive &#34;profitable growth in the lower price segments,&#34; as well as form the basis of Ford's upcoming midsize pickup truck, Farley said.



<h2>Ford's Q4 Earnings</h2>



The automaker reported mixed-bag Q4 earnings, with the reported revenue of $42.45 billion beating market expectations of $41.53 billion. However, the Q4 adjusted earnings of 13 cents per share missed analyst estimates of 18 cents per share.



The earnings call also showcased that Ford's total revenue was down 5% YoY. By the end of the quarter, the Detroit-based automaker had over $23.36 billion in cash and cash equivalents.



<h2>Ford's Partnerships With Chinese Brands?</h2>



Meanwhile, reports emerged of Ford reportedly being in talks with Xiaomi Corp (OTC:XIACF) (OTC:XIACY) to explore partnership opportunities between the two manufacturers, but the Farley-led automaker has denied any such collaborations.



Ford was also exploring battery partnerships with Chinese EV giant BYD Co. Ltd. (OTC:BYDDY) (OTC:BYDDF) to source lithium-ion batteries for the company's Hybrid vehicles in the U.S.



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According to Benzinga Edge Rankings, Ford scores well on the Momentum, Quality and Value metrics. It also has a favorable price trend in the Short, Medium, and Long term.



Price Action: Ford shares gained 0.81% to $13.68 during pre-market trading on Wednesday.



Check out more of Benzinga's Future Of Mobility coverage by following this link.



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Ford anticipates over $7 billion in EV-related charges in 2026 and 2027 due to a strategy pivot, as shared by CFO Sherry House during the Q4 earnings call. The Model E division expects losses of $4 billion to $4.5 billion this year, aiming for breakeven by 2029. Despite mixed Q4 earnings, with revenue of $42.45 billion exceeding expectations, adjusted earnings fell short. Ford is also exploring partnerships with Xiaomi and BYD for battery sourcing. Shares rose 0.81% to $13.68 in pre-market trading.

- Ford Motor Co. anticipates over $7 billion in electric vehicle (EV) charges in 2026 and 2027 as it pivots its strategy.  
- The company's Model E division expects losses of $4 billion to $4.5 billion this year, targeting breakeven by 2029.  
- Ford's Q4 earnings showed a revenue of $42.45 billion but missed adjusted earnings expectations, and reports indicate ongoing talks for partnerships with Chinese companies regarding battery sourcing.

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Ford Anticipates $7 Billion EV-Related Charges In Two Years — Predicts Model E Division Would Break Even In 2029