Tuesday, April 30, 2024

"Ford Lost $130,000 on Every EV It Sold in the First Quarter" (F)

Making a business of electric vehicles is hard.

From Car&Driver, April 26:

The Blue Oval reported an 84 percent drop in revenue in its Model e electric division.

  • Ford's Model e EV division reported a net revenue of around $100,000,000 in the first quarter.
  • Adding in expenses, though, the Blue Oval's EV arm lost $1.3 billion for the quarter.
  • Ford largely blames margin-cutting price cuts for the massive drop in revenue compared to Q1 2023.

Ford reported a net income of $1.3 billion for the first quarter of 2024, a figure largely bolstered by the success of the company's Ford Pro fleet division and the $3 billion it brought in—more than three times that of the internal-combustion-engine-focused Ford Blue arm. The Blue Oval's battery-electric–oriented Model e division, however, remained a drain on company funds, losing $1.3 billion for the quarter—around twice what it lost during the same period in 2023. The company blamed "industry-wide pricing pressure" in its first-quarter earnings presentation....


The article goes on to point out it is a damn good thing the rest of Ford's business is profitable.