Ford is losing $100,000 for every electric car it sells

The situation is radically different for new electric car brands than for traditional brands that have had to become electric car manufacturers and maintain both businesses in parallel. With million-dollar investments in platforms, for example, and in many other hardware and software areas. Ford is losing $100,000 for each electric car it sells and is a true image of the dramatic situation faced by various traditional and historical brands in the sector.

During the first quarter of 2024, and according to the earnings report announced on April 24,  Ford recorded $1.3 billion in net income. A good figure a priori, but electric cars are a really important burden for the American company. The Model E division, which is specifically dedicated to its electric vehicles, lost as much on its own as the company was able to gain together. Bloomberg points out that, at the moment, as I told you, the brand is losing about $100,000 for each electric car it sells.

The numbers don’t add up, Ford’s biggest liability is its electric car business

Even though  Ford has been able to increase its sales of electric cars by 86% during the first quarter of the year, it must be taken into account that these types of vehicles are only a small part of its catalog and business portfolio. They have only been able to sell  20,223 units combining sales of the Mustang Mach-E, the F-150 Lightning, and the E-Transit. It is  Ford Pro, the company’s commercial division, that offsets the losses of the division dedicated to electric cars.

All traditional brands are going through serious problems at the moment in the electric car market. Large groups such as Volkswagen or Stellantis have talked about it. Stellantis pointed out that they have the advantage that they are building electric vehicles on a multi-energy platform. So, even though some of their new launches are designed to only have fully electric mechanics,  they can return to thermal engines at any time to adapt to what the market demands.

Electric Explorer

Mercedes-Benz has corrected its strategy, as we talked about just a few days ago. And ultimately, they are all rethinking their strategy and the objectives they have set until now. In reality, it is not a problem that is affecting only traditional brands, because even Tesla is backtracking on some of its plans, and cutting expenses because global demand for electric cars is going through a significant loss of pace. In this, yes, traditional brands suffer much more.

And it is just now that we are beginning to wonder if perhaps Toyota, which has made a lukewarm bet on the electric car and has remained distrustful in recent years,  is the one that has got it right. They continue to lead the world market, and in reality, where they have made their biggest bet, and their biggest investment, is in models with hybrid engines.

Lynda Reeder

I'm Lynda, I currently own Tesla. I write about electric cars. My aim is to provide information on how technology can improve the ownership experience of electric vehicles.

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