After years of sales troubles in China, Ford Motor saw a chance to ride the tide of electrification to arrest its demise. From around 2020, the automaker followed Tesla’s formula of bypassing dealers to sell its cars directly to consumers. It introduced the Mustang Mach-E—an electric SUV with the iconic galloping horse logo, which Ford’s executives saw as a strong competitor to Tesla’s EVs. Three years later, Ford remains an also-ran in the world’s biggest auto market, prompting the company to recalibrate its China strategy yet again. In August, Ford pulled the plug on its direct-sales business. The Mach-E hasn’t...