Ford’s EV Collapse? Sales Down 70% as Toyota Stuns Market

Ford’s electric vehicle push is facing fresh scrutiny after a sharp first-quarter slowdown in the United States, where the automaker saw EV sales fall 70% year over year — a decline that has allowed rivals, including Toyota, to move ahead in a market Ford once positioned as a stronghold.

The drop comes at a critical moment for the industry. According to Cox Automotive, overall U.S. EV sales fell 27% in the first quarter of 2026 compared with a year earlier, with EV market share holding at 5.8% of new vehicle sales — well below its 10.6% peak in the third quarter of 2025. The slowdown has exposed how sensitive demand remains to pricing, incentives and product availability.

Ford sold just 6,860 electric vehicles during the quarter, a steep fall that left it trailing not only Toyota but also General Motors, Hyundai and even individual EV brands within larger groups. Toyota’s bZ alone crossed 10,000 units in the U.S., marking a 79% increase from a year earlier, while GM’s Chevrolet and Cadillac EVs sold 13,359 and 9,551 units respectively. Hyundai also outpaced Ford with 12,662 EVs sold.

Tesla, despite recent volatility, maintained its dominance and accounted for roughly 54% of total EV sales in the U.S., reinforcing how concentrated the market remains.

Strategic reset after heavy losses

The sharp decline in Ford’s EV sales reflects more than just weakening demand. It follows a broader strategic shift after the company absorbed nearly $20 billion in charges toward the end of 2025 tied to its electric vehicle operations. Like many legacy automakers, Ford has struggled to balance long-term electrification goals with near-term financial pressure, as most EV programs continue to generate losses.

In response, Ford has begun pulling back from aggressive expansion in high-end EVs and is redirecting focus toward more affordable electric models and hybrids. The company has also discontinued the current version of its F-150 Lightning and delayed several next-generation EV projects until later in the decade.

Its planned $30,000 mid-size electric pickup, expected to be built on a new universal EV platform, is now projected to launch next year — leaving a gap in its lineup at a time when competitors are actively expanding their offerings.

Competition intensifies as market evolves

Toyota’s recent surge highlights how quickly the competitive landscape can shift. Long viewed as cautious in the EV space, the Japanese automaker has gained traction with a focused rollout of new electric SUVs, including the 2026 bZ, bZ Woodland and C-HR models. The strong performance of a limited lineup suggests that product positioning and affordability are becoming more decisive than early-mover advantage.

Ford’s retreat has also opened the door for other competitors, including Hyundai, Kia and Lexus, all of which are steadily expanding their EV presence in the U.S. market. While the gap between automakers remains relatively narrow — often just a few thousand vehicles — the trend underscores how quickly rankings can change in a still-developing segment.

For Ford, the immediate outlook points to continued pressure in EV sales rankings as it works through its transition phase. The company’s longer-term strategy hinges on delivering lower-cost electric vehicles that can scale more profitably, but until those models reach the market, it risks losing further ground to faster-moving rivals.

The broader question facing the industry is whether automakers can align affordability, demand and profitability in a market that is no longer expanding as quickly as expected. For now, Ford’s latest results suggest that even established players are being forced to slow down and rethink their approach as the EV race enters a more challenging phase. More details on the company’s evolving EV plans can be found on Ford’s official electric vehicle page.

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