Ford Motor Co. (NYSE: F) shares sold for about $25 apiece in early 2022. Recently, they dropped near their 52-week low of $9.10. What was a promising move into electric vehicles (EVs) has turned out to be multi-billion-dollar losses. Its sales and profits in China, the world’s largest car market, are shaky. CEO Jim Farley said, “So far, what we’re seeing is a lot of cost and a lot of chaos,” referring to tariffs and the new administration’s plans to help U.S. manufacturers.

Ford’s most recent challenges could substantially undermine its financial situation. According to S&P Global Mobility, tariffs on cars and car parts from Mexico and Canada could increase the prices of new vehicles in the United States by as much as 20%.

Ford will continue to post EV losses in 2025, which may be more than the $5.1 billion it lost last year. In 2021, Ford said it would spend over $30 billion on its EV development by 2025. In 2022, Ford said it expected to reach an annual rate of building EVs at 600,000 by late 2023. Last month, total Ford EV sales in the United States were 5,666.

Ford earned $600 million in China last year. However, Ford will be one of the companies hit hardest by Chinese competition. According to Bloomberg: “As the US and China square off over everything from tech to military might, Ford Motor Co. has emerged as the American firm most at risk from its exposure to the world’s No. 2 economy, according to Strategy Risks, beating the likes of Apple Inc. and Tesla Inc.”

Finally, Farley recently said that if inexpensive Chinese EVs entered the U.S. market, it would severely damage his company. He described Chinese car companies as an “existential threat.”

Ford is under siege. And escaping that position will be a monumental task.

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