Ford’s electric vehicle and software business lost $5.1 billion in 2024, up from $4.7 billion lost in 2024. And the automaker doesn’t anticipate any relief this year, when it predicts it will lose as much as $5.5 billion on its EV business.

Ford reported its fourth quarter and full-year earnings on Wednesday, beating Wall Street expectations, according to CNBC. But the prediction of a tougher year ahead — Ford calls it “headwinds related to market factors” — underscores how far the company still needs to go before it can right-size its EV business. Ford also reported $1.4 billion in “cost improvements” from its Model e division.

To be sure, Ford’s gas cars are still doing great, continuing to bring in enough revenue for the company to end the year in the black. The company reported a full-year net income of $5.9 billion and an adjusted earnings of $10.2 billion.

But the company warned its earnings may drop $2 billion or more in 2025 thanks to costly new vehicle launches and falling car prices.

The company has said it isn’t factoring in cost increases associated with President Donald Trump’s threat to impose 25 percent tariffs on imports from Mexico and Canada. (Trump recently paused tariffs for one month.) Nor is it taking into account the likely elimination of Biden-era EV incentives, like tax credits and manufacturing credits.

On the earnings call, Ford CEO Jim Farley said a few weeks of tariffs would be “manageable,” but protracted tariffs would have “a huge impact on our industry, with billions of dollars of industry profits wiped out and adverse effect on the U.S. jobs, as well as the entire value system in our industry.” He predicted “higher prices for customers” if Trump’s tariffs remain in place.

Ford is struggling to keep up with its rivals in the EV market. While General Motors released several new models last year, including new Chevy and Cadillac vehicles, Ford only has three battery-electric vehicles for sale. GM’s EV business is showing signs of profitability, while Ford’s continues to struggle. And Ford previously canceled plans to introduce an electric three-row SUV in the hopes that its Silicon Valley-based skunkworks team will enable it to roll out cheaper models in the near future.

Farley said the automaker would introduce a range of powertrains, including battery-electric, plug-in hybrid, and extended range EVs, that use small gas engines to recharge the battery for up to “700 miles of range.” These include “flexible body-on-frame and unit-body platforms that will be designed for these multi-energy powertrains,” he said.