WSJ Opinion: Potomac Watch Another Electric Car Crash: Ford's $19.5 Billion EV Write-Down
Dec 31, 2025
Alicia Finley, a Wall Street Journal columnist, dives into Ford's staggering $19.5 billion charge on its EV business. She explains how changing tax credits and market dynamics have shifted consumer interest away from EVs. The discussion highlights the impact of Trump’s CAFE revisions on the automotive landscape and the EU's retreat from stringent gas-car bans. Finley also critiques government energy policies, using the failed Ivanpah solar plant as a cautionary tale of misallocated resources and misguided regulations.
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Market, Not Mandates, Drove The EV Surge
- Ford's $19.5 billion EV charge reflects customers shifting away from expensive pure EVs toward hybrids and affordability.
- Alicia Finley says the EV market surge was driven by subsidies and collapsed back to ~5% when credits expired.
Hybrids Resurge As Practical Compromise
- Automakers are pivoting to hybrids and E-REVs to meet customer preferences and avoid losses from unprofitable pure EVs.
- Alicia Finley notes Ford will emphasize hybrid F-150s capable of ~700 miles instead of all-electric trucks.
Corporate Politics Can Misalign With Markets
- CEOs often align with prevailing political incentives to gain subsidies or regulatory favors, which can backfire when rules change.
- Kyle Peterson warns such lobbying creates a tragedy of the commons where shareholders ultimately lose.