Ford Motor Co reported a 31.4% decline in electric vehicle (EV) sales for the second quarter of 2025.

This decrease is attributed to a recall and production issues, specifically the halt in sales of the Mustang Mach-e due to a safety flaw.

About 317,000 Mustang Mach-e units were recalled due to faulty electronic door latches that may cause lock-out conditions and pose injury risks in high temperatures.

As a result, Mustang Mach-e sales fell 19.5%, F-150 lightning electric pickup dropped 26.1%, and e-transit van sales plunged 88% during the quarter.

In contrast, Ford sold over 216,000 gasoline and hybrid F-series pickups, as overall sales rose 14.2%, driven by gains in gas and hybrid models.

Ford expects EV inventories to recover starting July 2025 and plans to focus on lower-cost EVs, planning to launch vehicles priced under US$30,000 in 2027.

🔗 Source: Bloomberg

🧠 Food for thought

1️⃣ Safety recalls create significant market challenges unique to EVs

Ford’s 31.4% drop in EV sales following the Mach-e recall demonstrates how safety issues can disproportionately impact electric vehicle manufacturers with limited model lineups.

While traditional automakers can absorb recalls across diverse product portfolios, Ford’s EV sales were severely impacted as the Mach-e represents their highest-volume electric model, which dealers described as their “top seller” before the recall 1.

This vulnerability is particularly significant as consumer confidence in EV technology remains fragile, with 49% of potential buyers citing concerns about reliability and unexpected costs according to Deloitte’s 2025 Automotive Consumer Study 2.

The timing of Ford’s recall coincided with broader market challenges, as McKinsey’s research shows that charging infrastructure and vehicle reliability remain top concerns preventing wider EV adoption across global markets 3.

For Ford specifically, the contrast between the company’s overall sales growth of 14.2% and the dramatic decline in EV sales highlights how safety recalls can disproportionately impact emerging product categories where alternatives within a brand’s lineup are limited.

2️⃣ Hybrid vehicles emerge as consumer preference amid pure EV hesitation

Ford’s 23.5% increase in hybrid sales during the same period its EV sales declined reflects a broader market trend where consumers are choosing intermediate electrification solutions.

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