Ford's EV Sales Plummet 31.4%, Mustan Mach-E Recall and Tariff Worries Weigh Heavy

Ford's EV sales slumped 31.4% in Q2 due to a Mustang Mach-E software glitch recall and factory shutdowns for the model year 2025. F-150 Lightning sales fell 26%, while Mach-E sales dropped 19.5%. Ford plans to launch a new lineup of EVs at lower prices in 2027. General Motors saw a 111% EV sales growth in Q2, while Tesla's deliveries declined 14%.

Ford's electric vehicle (EV) sales experienced a significant decline in the second quarter of 2025, dropping by 31.4% compared to the same period last year. The company reported that it sold 16,438 electric vehicles in the US in Q2 2025, nearly a quarter less than it did in the same period last year (23,957) [2].

The primary reasons for this downturn were attributed to two key factors. Firstly, the Mustang Mach-E and F-150 Lightning models were impacted by the transition to the 2025 model year, leading to a lack of inventory for dealers to sell [2]. Secondly, Ford had to recall nearly 200,000 Mustang Mach-E models due to a software glitch that could potentially lock users inside or outside the vehicle. The recall is currently under a stop-sale, and a software update is expected to be rolled out in the third quarter [2].

Consequently, sales of each of Ford's three EVs declined by double digits in Q2. The F-150 Lightning saw a 26% decrease, with 5,842 units sold compared to 7,900 units in Q2 2024. The Mustang Mach-E also experienced a 19.5% drop, selling 10,178 units compared to 12,825 units in the same period last year. The E-Transit, Ford's electric delivery van, saw an even more substantial drop, with sales declining by 87.7%, selling only 418 units compared to 3,585 units in Q2 2024 [2].

In contrast, General Motors (GM) reported a significant increase in EV sales, with a 111% growth in Q2 2025. GM sold 46,280 electric vehicles across its Chevrolet, GMC, and Cadillac brands, compared to Ford's 16,438 units [2].

Tesla, another major player in the EV market, also reported a decline in vehicle deliveries in the second quarter of 2025. The company delivered 384,122 vehicles, representing a 13% decrease from the same period last year [3].

Ford is planning to introduce a new lineup of EVs at lower prices in 2027, with the aim of turning around its sales performance. This strategy aligns with the broader trend in the EV market, where affordability is becoming increasingly important to attract a wider range of consumers.

References:
[1] https://www.reddit.com/r/F150Lightning/comments/1lshkn6/heres_why_fords_electric_vehicle_sales_crashed_by/
[2] https://electrek.co/2025/07/01/ford-explains-why-its-ev-sales-crashed-by-nearly-a-third-in-q2/
[3] https://thetechportal.com/2025/07/02/tesla-ev-deliveries-drop-by-13-in-q2-2025/