Former Ford Chief Executive Officer Mark Fields expressed measured optimism regarding the trajectory of the U.S. electric vehicle (EV) market, suggesting that although the removal of federal incentives under the Trump administration has temporarily dampened consumer enthusiasm, demand will gradually recover in the months and years ahead. Speaking in a detailed interview with CNBC, Fields, now 64, explained that the elimination of these government-backed financial incentives in September created an immediate, predictable slowdown in purchases, as price-sensitive buyers momentarily reconsidered EV affordability. However, he emphasized that the longer-term evolution of the market would still favor electrification, albeit at a more deliberate and organic pace than many automakers had originally projected.
Acknowledging the short-term disruptions caused by the policy change, Fields commented that the U.S. industry should expect a clear pullback following the end of the federal subsidies, which had effectively reduced the price barrier for both new and used electric vehicles. Yet, he added, a steady recovery lies ahead, supported by broader social and environmental trends that continue to point consumers toward cleaner energy alternatives. According to Fields, this shift is ultimately inevitable because oil, the foundational resource for combustion-engine vehicles, remains a finite and non-renewable commodity. This reality, he suggested, ensures that over time, market dynamics will inexorably favor sustainable technologies such as battery-powered transportation.
Still, Fields cautioned that the speed of this transition will be more moderate than manufacturers once believed, underscoring the necessity of recalibrated corporate expectations. He noted that the slower pace of EV adoption has already prompted major legacy automakers—including Ford and General Motors—to record significant impairment charges, reflecting lowered valuations of their electrification assets in light of the revised demand outlook. For instance, on October 14, General Motors disclosed through an exchange filing that it would take a substantial $1.6 billion charge associated with a strategic realignment of its EV production capacity. The company reasoned that, following the expiration of federal benefits on September 30, adoption rates were now forecast to decelerate. Fields interpreted such announcements as indicators of a broader recalibration occurring across the industry, as both automakers and investors begin to adapt to a new and less predictable demand curve for electric vehicles.
While Fields himself refrained from offering further direct comment after his appearance, his perspective sheds light on how policy shifts ripple across the automotive ecosystem. Under the prior Biden administration policy, American consumers were eligible to claim sizable tax credits—up to $7,500 for a new electric vehicle and $4,000 for a pre-owned one—effectively lowering the cost threshold for EV ownership. The Trump administration’s termination of both programs abruptly removed these incentives, creating a headwind for demand at a critical juncture when automakers had scaled up EV production in anticipation of sustained growth.
Mark Fields’ commentary also reflects his deep institutional knowledge of the company he once led. Having joined Ford in 1989 after earning his MBA from Harvard Business School, Fields ascended through numerous senior leadership roles before serving as chief operating officer from 2012 to 2014 and later as CEO between 2014 and 2017. This extensive background provides him with a nuanced appreciation of the forces shaping both corporate strategy and consumer behavior in the automotive landscape. Earlier in the same month, he had remarked that major U.S. automakers overestimated near-term EV appetite, charging “full bore” into electrification based on assumptions of rapid adoption that have since proven overly ambitious. What once appeared to be a competitive advantage—an early and aggressive pivot toward electrified fleets—now risks becoming, as Fields vividly described, an operational “albatross” in the short-to-medium term, as the pace of customer uptake trails projections.
However, not all industry leaders share Fields’ tempered outlook. Former Tesla president Jon McNeill, who oversaw global sales and marketing for the company from 2015 to 2018, presented a more optimistic counterpoint in a separate CNBC interview on October 2. Drawing on evidence from Europe—specifically France and Germany—McNeill observed that even after similar government subsidies were phased out several years earlier, EV markets there continued to expand robustly. In his view, this resilience demonstrates that once a marketplace reaches a certain level of maturity, continued growth can sustain itself without external financial stimuli. McNeill interpreted this as a sign that the American EV sector, too, is approaching such maturity and may soon function effectively without relying on subsidies.
Adding another dimension to the debate, Ford’s current CEO, Jim Farley, provided a cautious assessment during a Detroit conference on September 30. Farley suggested that the rollback of federal tax credits could temporarily halve U.S. EV sales, with short-term market penetration likely hovering around five percent. Nonetheless, he predicted that adoption will regain momentum over time, driven particularly by improvements in affordability and accessibility of lower-cost models. His statement during an October 23 earnings call reinforced this dual message of short-term retrenchment followed by long-term expansion.
Even amidst these shifting dynamics, Ford’s broader financial performance remains strong, with its share price climbing nearly forty percent year-to-date. Such performance underscores the market’s belief that while the immediate pace of EV adoption may slow, the underlying transformation toward sustainable transportation remains steadfast. In essence, the discontinuation of federal incentives has introduced a transitional period—one marked by uncertainty, adjustment, and strategic introspection. Yet, as Mark Fields and other industry leaders agree, the overarching direction is clear: despite temporary obstacles, the journey toward a more electrified and environmentally responsible automotive future will continue to gather strength, albeit through measured and disciplined progress rather than explosive acceleration.
Sourse: https://www.businessinsider.com/ex-ford-ceo-ev-market-gradual-growth-pullback-federal-incentives-2025-10
