F - Here's the Staggering Amount of Money Ford Loses on Each EV It Makes
2024-06-18 10:03:00 ET
Unless investors have closed their eyes and covered their ears, they've likely heard that electric vehicle (EV) sales growth in the U.S. market has slowed to a crawl. That's become a big headache for major automakers such as Ford Motor Company (NYSE: F) , which had planned to invest billions of dollars into its EV segments and battery factories.
The news gets a little worse, as a recent report just noted the staggering losses per Ford EV -- but the company is taking action to offset those costs. Let's dig in.
If you merely glance at Ford's first-quarter results, you'll see just how much of a drag its EV unit, Ford Model e, was on results. Earnings before interest and taxes (EBIT) for Ford Model e in the first quarter checked in with a $1.32 billion loss. A source told Bloomberg recently that Ford's losses per EV topped a staggering $100,000 during the first quarter, which was reportedly more than double the loss per EV last year. One issue is simply the high costs -- including batteries, which remain one of the largest costs of EVs. Ford will need to scale its EV production to help lower costs.
For further details see:
Here's the Staggering Amount of Money Ford Loses on Each EV It Makes