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After announcing its electric vehicle business lost over $5 billion in 2024, Ford could face even more headwinds this year. Despite the threat of new tariffs and fewer government incentives, CEO Jim Farley stressed Ford is still “really confident” in its EV strategy. Farley said that Chinese EV makers are becoming a major global force, and even with tariffs, Ford needs to beat them “straight up in a street fight.” This is the electric car he was referring to.

Ford reported fourth-quarter earnings on Wednesday, beating Wall Street’s top- and bottom-line estimates. Despite posting $48.2 billion in Q4 revenue, Ford’s model e division reported an EBIT loss of $1.4 billion.

The EV business lost $5.1 billion last year after losing $4.7 billion in 2023. On the company’s earnings call, Farley said new competition led to increased pricing pressure. Ford expects Model e to lose another $5 billion to $5.5 billion this year. In total, the company is forecasting an adjusted EBIT of $7 billion to $8.45 billion in 2025.

Like GM, Ford did not factor in the potential impacts of tariffs or other changes in policy by the Trump administration.

Farley explained on the call that “There’s no question that tariffs at 25% level from Canada and Mexico, if they’re protracted, would have a huge impact on our industry, with billions of dollars of industry profits wiped out and an adverse effect on the US jobs.”

Chinese-EV-Ford
Ford Lightning production (Source: Ford)

Ford’s CEO said he looks forward to working with government leaders to ensure they are “strengthening, not weakening our nation’s auto industry.”

The tariff situation, growing demand for the latest tech and software, and “the Chinese OEMs growing to become a global reality,” Farley said, “these dynamics will all play out for some time to come.”

Chinese-EV-Ford
Ford’s electric Explorer for Europe (Source: Ford)

Ford CEO warns Chinese EV makers are a global threat

Ford sells some electric cars outside of the US, including the new electric Puma, Explorer, and Capri models, launched in Europe, so it does have an idea of the changing market dynamics.

After accounting for 8% of car sales in the US last year, Farley said EVs are growing, and “people who buy these vehicles don’t go back to combustion.” He added that it is a “very vibrant market” and a “global capability for Ford.”

Chinese-EV-Ford
Ford electric Puma Gen-E (Source: Ford)

As a global player, it will need to compete with Chinese EVs, which Farley has previously called an “existential threat” to the industry. During the earnings call, Farley touched on the subject, saying they continue to expand and are becoming “a major force in our industry.”

After Morgan Stanley analyst Adam Jonas asked, “Do you think that U.S. tariff policies will be successful in keeping Chinese EVs out of the US market long term,” Farley said the topic “is really pertinent to us.”

Chinese-EV-Ford
Xiaomi SU7 (Source: Xiaomi)

Ford’s CEO added, “The level of subsidies that these companies have in China is very material as well as these are digital vehicles with digital footprints and really deep into people’s digital life.” Farley explained, “On the kind of unfair part or the subsidy part, I think we’ll have to sort that out as a country.”

At the end of the day, “the company has to stand on its own.” Ford will work with government partners to make it a level playing field, but “in the end of the day, it’s management’s responsibility to beat the SU7 straight up in a street fight.”

Chinese-EV-Ford
Xiaomi SU7 (Source: Xiaomi)

The SU7 is Xiaomi’s first self-developed electric car. After shipping one to the US and driving it for a few months, Farley called it “fantastic” and didn’t want to give it up.

After launching the SU7 last April, Xiaomi revealed it had already delivered over 135,000 models in 2024. The SU7 starts at around $30,000 (215,900 yuan).

Ford is betting on its low-cost platform, which is being developed by a team of former Tesla, Rivian, Lucid, and Apple engineers, to help it compete.

The first models, due out in 2027, are expected to be a smaller electric pickup and SUV, starting at about $30,000.

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Lectric Ebikes may be launching a new XP 4 this week, and it could change everything

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Lectric Ebikes may be launching a new XP 4 this week, and it could change everything

Lectric Ebikes appears to be preparing for a major new product launch, teasing what looks like the next evolution of its wildly popular folding fat tire electric bike. Based on the clues, it looks like a new Lectric XP 4 could be inbound.

In a social media post released over the weekend, the company shared a minimalist graphic reading “XP4” along with the message “Tune in 5.6.2025 9:30AM PT.” That date – this Tuesday – suggests we’re just hours away from the big reveal of the Lectric XP 4.

If true, this would mark the next generation of the most successful electric bike in the U.S. market. The current model, the Lectric XP 3.0, has become an icon of accessible, budget-friendly electric mobility. Starting at just $999, the XP 3.0 offers a foldable frame, fat tires, a 500W motor, a rear rack, lights, and hydraulic brakes – all packed into a highly shippable design that arrives fully assembled. It’s the kind of package that has helped Lectric claim the title of best-selling e-bike brand in the U.S. for several years in a row.

With the XP 3.0 still going strong, the teaser raises plenty of questions. Will the XP 4.0 be a modest update or a major leap forward? Could we see new features like torque-sensing pedal assist, a location tracking option, or upgraded performance? Or is Lectric preparing a more comfort-oriented variant, maybe even with upgraded suspension or even more accessories included standard?

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The teaser image, which features stylized stripes in grey, blue, and black, may hold some clues. One theory is that the colors represent new trim options or component upgrades. Another possibility is that Lectric is preparing multiple variants of the XP 4.0 – perhaps targeting commuters, adventurers, and off-road riders with purpose-built versions. We took the liberty of a bit of rampant speculation late last year, so perhaps that’s now worth a revisit.

At the same time though, Lectric’s penchant for launching new models at unbelievably affordable prices has never run up against such strong pricing headwinds as those posed by uncertainty in the current US-global trade war fueled by rapidly changing tariffs for imported goods.

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Previous versions of the Lectric XP e-bike line have seen sky-high sales

Whatever the case, Lectric’s knack for surprising the industry with high-value, customer-focused e-bikes means expectations will be high. The brand has built a loyal following by delivering reliable performance at a price point that few can match, and any major update to the XP lineup is likely to ripple across the market.

As a young and energetic e-bike company, Lectric is also known for throwing impressive parties around the launch of new models. It looks like I may need to hop on a red-eye to Phoenix so I can see for myself – and so I can bring you all along, of course.

Be sure to tune in Tuesday at 9:30AM PT to see what Lectric has in store – and you can bet we’ll have all the details and first impressions as soon as they drop.

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U.S. crude oil prices fall more than 4% after OPEC+ agrees to surge production in June

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U.S. crude oil prices fall more than 4% after OPEC+ agrees to surge production in June

Logo of the Organization of the Petroleum Exporting Countries (OPEC)

Andrey Rudakov | Bloomberg | Getty Images

U.S. crude oil futures fell more than 4% on Sunday, after OPEC+ agreed to surge production for a second month.

U.S. crude was down $2.49, or 4.27%, to $55.80 a barrel shortly after trading opened. Global benchmark Brent fell $2.39, or 3.9%, to $58.90 per barrel. Oil prices have fallen more than 20% this year.

The eight producers in the group, led by Saudi Arabia, agreed on Saturday to increase output by another 411,000 barrels per day in June. The decision comes a month after OPEC+ surprised the market by agreeing to surge production in May by the same amount.

The June production hike is nearly triple the 140,000 bpd that Goldman Sachs had originally forecast. OPEC+ is bringing more than 800,000 bpd of additional supply to the market over the course of two months.

Oil prices in April posted the biggest monthly loss since 2021, as U.S. President Donald Trump’s tariffs have raised fears of a recession that will slow demand at the same time that OPEC+ is quickly increasing supply.

Oilfield service firms such as Baker Hughes and SLB are expecting investment in exploration and production to decline this year due to the weak price environment.

“The prospects of an oversupplied oil market, rising tariffs, uncertainty in Mexico and activity weakness in Saudi Arabia are collectively constraining international upstream spending levels,” Baker Hughes CEO Lorenzo Simonelli said on the company’s first-quarter earnings call on April 25.

Oil majors Chevron and Exxon reported first-quarter earnings last week that fell compared to the same period in 2024 due to lower oil prices.

Goldman is forecasting that U.S. crude and Brent prices will average $59 and $63 per barrel, respectively, this year.

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Chicago plans more, and more equitable public charging as EV sales climb

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Chicago plans more, and more equitable public charging as EV sales climb

Electric vehicles’ share of the market continues to climb in America’s second city, with BEV registrations up more than 50% in the first quarter of 2025 compared with the same period last year. Great news, but charging hasn’t up – but a new plan from Chicago Department of Transportation aims to build up enough infrastructure for the city to keep up.

In a bid to keep up with the rapid growth of EVs, Chicago Department of Transportation (CDOT is currently seeking public feedback on a plan called “Chicago Moves Electric Framework.” The city’s first such plan, it outlines initiatives that include a curbside charging pilot through the city’s utility, ComEd, and expanded charging access in key areas throughout the city.

Unlike other such plans, however, the new plan aims to focus on bringing electric vehicle charging to EIEC and low income communities, too.

“Through this framework, we are setting clear goals and identifying solutions that reflect the voices of our residents, communities, and regional partners,” said CDOT Commissioner Tom Carney. “By prioritizing equity and public input, we’re creating a roadmap for electric transportation that serves every neighborhood and helps drive down emissions across Chicago.”

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Neighborhoods on the south and west sides of Chicago experience a disproportionate amount of air pollution and diesel emissions, largely due to vehicle emissions according to CDOT. Despite that, most of Chicago’s public charging stations are clustered in higher-income areas while just 7.8% are in environmental justice neighborhoods that face higher environmental burdens.

“Too often, communities facing the greatest economic and transportation barriers also experience the most air pollution,” explains Chicago Mayor Brandon Johnson. “By prioritizing investments in historically underserved areas and making clean transportation options more affordable and accessible, we can improve both mobility and public health.”

The Framework identifies other near-term policy objectives, as well – such as streamlining the EV charger installation process for businesses and residents and implementing “Low-Emission Zones” in areas disproportionately impacted by air pollution by limiting, or even restricting, access to conventional medium- and heavy-duty vehicles during peak hours.

The Chicago Moves Electric Framework includes the installation of Level 2 and DC fast charging stations in public locations such as libraries and Chicago’s Midway Airport, “supporting not only personal EVs but also electric taxis, ride-hail and commercial fleets.”

Chicago has a goal of installing 2,500 public passenger EV charging stations and electrifying the city’s entire municipal vehicle fleet by 2035.

Electrek’s Take

Chicago Drives Electric | ComEd Press Conference
ComEd press conference at Chicago Drives Electric, 2024; by the author.

I hate to sound like a bed-wetting liberal here, guys, but Chicago is getting EVs absolutely right with big utility incentives on both vehicles and infrastructure, a governor willing to stand behind smart environmental policy, and a solid push for more and better infrastructure in the areas where they’ll do the most good. They’re even thinking of the children.

Here’s hoping more cities follow suit.

SOURCE: ComEd, via Smart Cities Dive; featured image by EVgo.

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