This doesn’t look good. For the first time, Ford has released sales statistics for its electric vehicles compared to gas-powered cars. It seems that on average, they have lost nearly $60,000 on each electric vehicle sold.
How much money has the automaker lost overall, and what is the reason?
Ford is losing massive amounts of money on electric vehicles. In case you didn’t know, the Michigan-based automaker reorganized its company and created two separate divisions to accelerate its transition to electric vehicles. One division focused on gas-powered cars called Ford Blue and one division specialized in electric vehicles called Ford Model E.
After the reorganization, the company also announced that it will invest $50 billion in electric mobility from 2022 to 2026. Previously, they planned to spend $30 billion over five years ending in 2025. The automaker was riding high and also received over 150,000 orders for the new Ford F-150 Lightning. However, the electric business is not making money for Ford.
Ford has released its first quarter results and some people can’t help but wonder. That’s because Ford’s Model e division lost over $700 million in the first quarter, $0.100 million more than in the fourth quarter of last year.
However, sales aren’t doing all that well either. In fact, they were $700 million in the first three months of the year. In the last quarter of 2022, they reached 1.6 billion. Most striking, however, is the fact that Ford has sold only 12,000 electric vehicles. Thus, the company had to lose about 58 thousand dollars (1.2 million crowns) per one.
EV sales in Q1:— Sawyer Merritt (@SawyerMerritt) May 2, 2023
• Tesla: ~423,000 (up 36% YoY)
• Ford: 12,000 (down -33% YoY)
Ford expects its all electric "Model E" division to lose $3B in 2023.
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