Ford Motor Company (NYSE: F) is on a major mission to electrify its future. Once known for iconic gas-powered vehicles like the Mustang and F-150, the automaker is now aiming to become a global leader in electric mobility. This shift comes with a long-term environmental pledge—Ford plans to reach carbon neutrality by 2050, aligning with the Paris Climate Agreement and science-based targets.
Ford Shifts Gears Toward an Electric Future
To kickstart this transition, Ford invested over $11.5 billion in EV development till 2022 and has since significantly increased its commitment. The company’s strategy targets a complete overhaul of how vehicles are designed, built, and powered, paving the road for a cleaner, more sustainable auto industry.
The top car maker boosted its electric vehicle investment to $29 billion through 2025, reinforcing its commitment to an electric future. Rather than starting from scratch like some EV startups, Ford is electrifying its most popular existing models—vehicles that consumers already trust and love.
Key investments include electric versions of the Mustang Mach-E and the F-150 Lightning. These vehicles symbolize Ford’s approach: innovate within tradition and meet customer expectations while reducing emissions.
Mustang Mach-E and F-150 Lightning Lead the Charge
Ford’s strategy is paying off in real numbers. In 2024, the Mustang Mach-E outsold the traditional gas-powered Mustang, with over 51,000 electric units sold compared to 44,000 gas models. This is a clear sign that consumers are embracing electrification when it comes in familiar packages.
The F-150 Lightning, Ford’s all-electric pickup, has also made waves. With over 200,000 reservations by late 2021, demand exceeded early production capacity, leading to a multi-year waitlist. The Lightning’s ability to tow heavy loads and even power homes during outages has made it a standout in the EV truck segment.
However, the road hasn’t been entirely smooth. In April 2025, Ford’s EV sales dropped 39.4% compared to the same month in 2024, showing the competitive and evolving nature of the EV market.
Inside Ford’s Science-Based Carbon Neutral Roadmap
Ford’s climate plan targets the full lifecycle of its vehicles, focusing on the three biggest sources of emissions:
- Vehicle use (Scope 3)
- Supplier manufacturing
- Ford’s global operations
Combined, these areas represent around 95% of the company’s carbon footprint. Ford’s roadmap includes switching all its manufacturing to 100% renewable electricity by 2035, and as of 2023, over 70% of its global operations already run on carbon-free energy.
From 2010 to 2017, Ford cut more than 3.4 million metric tons of manufacturing emissions, equal to taking over 728,000 cars off the road for a year. The company achieved this through efficiency upgrades like LED lighting and streamlined paint systems.
Green Bonds and Clean Financing
To fund its EV and climate goals, Ford issued $4.25 billion in green bonds since 2021, the largest green bond offering by a U.S. non-financial company. These funds are being used to support EV production, battery development, and clean transportation infrastructure.
The company also ties its credit facilities to specific environmental targets, including renewable energy use and vehicle emissions.
Tackling Legacy and Supply Chain Hurdles
As a traditional automaker, Ford must revamp decades of operations, from factories to supplier networks. CEO Farley emphasizes that success in this era isn’t just about electric motors; it’s also about mastering software, digital services, and new customer experiences.
Ford has separated its EV and gas vehicle businesses to compete more efficiently with EV-first companies.
Ford is also working with suppliers to cut emissions. In 2024, 377 suppliers reported their carbon data, up 20% from 2022. The company aims to purchase 10% low-carbon aluminum and near-zero steel by 2030 and is part of the First Movers Coalition pushing for cleaner materials across industries.
Solving Charging Challenges with a Strong Network
Charging remains one of the biggest hurdles for EV adoption, and Ford is tackling it head-on. The company created the Blue Oval Charge Network, which now includes over 106,000 chargers across North America.
In a major move, Ford partnered with Tesla, giving Ford EV owners access to 15,000+ Tesla Superchargers. This expanded network helps eliminate range anxiety and makes long-distance travel easier for Ford drivers.
The FordPass app offers real-time access to charging station locations, availability, and payment, streamlining the entire process for users.
Taking On Tesla and New Global Rivals
Tesla still leads the U.S. EV market with a 43.4% share in Q1 2025, although that’s down from 51% the previous year. Ford is trying to close the gap by offering electrified versions of its most recognized vehicles—a contrast to Tesla’s approach of creating entirely new models.
Ford CEO Jim Farley has pointed out that Chinese automakers like BYD and Geely are emerging as the most serious competition globally. These companies are flooding markets with affordable, high-tech EVs and are gaining traction in multiple regions.
Read Farley’s comments on EV rivals
Ford’s Stock (F) Watch: Solid Dividends Amid EV Losses
Ford stock (NYSE: F) closed at $10.48 on June 25, 2025, up 16% from the start of 2024. While this shows investor optimism, the company’s EV division, Model E, is still in the red.
In 2024, Model E reported a $5.1 billion loss and is on track to lose another $5 to $5.5 billion in 2025, translating to around $132,000 lost per EV sold in Q1.
Despite this, Ford offers a dividend yield of 4.44%, providing value to shareholders as the company navigates its EV transformation, something Tesla currently doesn’t offer.
Why Ford Is on ESG Investors’ Radar
Ford’s plan to become carbon neutral by 2050 and its steady progress toward that goal make it a compelling option for climate-conscious investors. With proven manufacturing capacity, strong vehicle branding, and green financing in place, Ford offers a way to participate in the clean transport boom without the risks tied to early-stage startups.
Its path won’t be without bumps, but for investors seeking long-term value in sustainability, Ford remains a stock to watch.
