Ford’s small EV move could pay off big

Here’s what we know, or mostly know for sure: At some point, sales of electric vehicles (EVs) in the US market are going to gain some serious momentum. So far, sales have grown more slowly than anticipated. Overseas regions such as China generate more than half of new vehicle sales through EVs, while the US generates about 8% of new vehicle sales through EVs. But Ford Motor Company (F 1.15%) addresses one of the challenges preventing widespread adoption in the US and could pay off big.

Free!

“There is no bigger obstacle than charging,” Ford CEO Jim Farley told Reuters in an interview.

It’s true – range anxiety, as well as high prices and quality, remain the main obstacles to widespread adoption of electric vehicles in the US market. But Ford is taking a new approach to help fight anxiety with the launch of its new “Ford Power Promise” program.

The program is simple: educate people about EV charging and how convenient it is to charge at home. Ford offers all new buyers of Ford electric vehicles a free home electric vehicle charger, with standard installation costs covered. Customers who purchase a Ford EV in the fourth quarter and already have a home charger or live in apartments will be eligible to receive $2,000 cash back from dealers.

It’s a small move that could appeal to people who are on the fence about purchasing an electric vehicle. It’s also a move that polls show is a smart one. According to a 2024 survey, Ford found that 89% of shoppers are more likely to buy if they have home charging. An even steeper 92% of owners find charging at home to be as easy as charging mobile phones.

That’s not all Ford does, though. It also provides some relief and safety when it comes to the very expensive battery component. Ford offers an eight-year, 160,000-mile battery warranty to help alleviate concerns about battery health and lifespan.

Change of pace

The strategy to help boost EV sales with the program comes at a time when Ford could use a change of pace in the EV world. Ford sold around 44,000 vehicles in the first half of 2024. This is a 72% gain over the first half of the previous year, which was enough to become the second largest seller of electric vehicles in the market in US. It still went massive adzein first place, with 831,000 deliveries during that period.

Speaking of Tesla, though, Ford became the first major automaker to partner with Tesla on its national supercharger network in May 2023, and Ford vehicles will be equipped with compatible charging ports starting in 2025.

What does it all mean?

Ford’s Model ea division, responsible for its electric vehicles, is expected to lose up to $5.5 billion in 2024 alone. Ford has withdrawn about $12 billion in EV investments and projects. It even canceled a highly anticipated electric SUV in August to help offset EV losses, even though the move cost an estimated $1.9 billion in the short term.

While Ford is busy trying to make up for the heavy losses of electric vehicles, this is one of the first strategies we’ve seen that pushes the vehicles to consumers. This small move could pay off big if Ford can educate people about the convenience of charging at home.