James Farley, CEO, Ford speaks onstage throughout the Reindustrialize Conference 2025 on July 16, 2025 in Detroit, Michigan.
Tasos Katopodis | Getty Images
DETROIT – Ford Motor CEO Jim Farley mentioned he expects demand for all-electric vehicles to be slashed in half subsequent month following the end of federal tax incentives on Wednesday.
Farley on Tuesday mentioned he “wouldn’t be surprised” if sales of EVs fell from a market share of round 10% to 12% this month — which is predicted to be a report — to 5% after the inducement program ends.
“I think it’s going to be a vibrant industry, but it’s going to be smaller, way smaller than we thought, especially with the policy change in the tail pipe emissions, plus the $7,500 consumer incentive going away,” he mentioned throughout a Ford occasion about selling expert trades and employees in Detroit. “We’re going to find out in a month. I wouldn’t be surprised that the EV sales in the U.S. go down to 5%.”
Farley mentioned the trade discovered that “partial electrification,” reminiscent of hybrids, are simpler for purchasers to settle for in the interim.
Farley mentioned his Model e EV team is analyzing the demand for non-gas-powered autos every day. The firm presently presents a handful of all-electric autos, together with the F-150 Lightning pickup, which might high $90,000, and Mustang Mach-E crossover in the U.S.
The federal EV incentives of up to $7,500 are coming to an end as half of the Trump administration’s “One Big Beautiful Bill Act,” which stripped the outdated enticement however included some perks for purchasing a U.S.-assembled automobile, regardless of it being an EV.
“Customers are not interested in the $75,000 electric vehicle. They find them interesting. They’re fast, they’re efficient, you don’t go to the gas station, but they’re expensive,” Farley mentioned.
Once the invoice was handed, sales of EVs shortly gained traction, particularly as some automakers added much more reductions to transfer out older fashions.
Cox Automotive forecasts sales of EVs hit 410,000 throughout the third quarter, up 21% from a yr earlier. That would simply be the best quantity of EVs ever offered in 1 / 4 in the U.S., in addition to a record 10% market share.
Cox and different trade analysts and executives anticipate many consumers pulled forward plans to buy an EV earlier than the federal incentives sundown.
Farley additionally mentioned the federal adjustments imply the auto trade, together with Ford, can have to adapt, saying the corporate can have to determine what to do with its battery vegetation and EV capability.
“We’ll fill them, but it will be more stress, because we had a four-year predictable policy,” Farley mentioned. “Now the policy changed. … We all have to make adjustments, and it’s going to be good for the country, I believe, but it will be one more stress.”
Slight tweak: Farley was talking Tuesday on the automaker’s “Ford Pro Accelerate” occasion, which options executives from many industries in addition to public officers discussing the “essential economy” and wish for expert labor and training.