Ford Announces Its Loss in Electric Vehicles
Ford announced that it made a loss of $2023 billion in the electric vehicle (EV) department in the third quarter of 1.3. This loss occurred due to slowing demand and Tesla's price war, despite the company's EV sales increasing.
How Are Ford's Electric Vehicle Sales?
Ford announced that it sold 20,962 electric vehicles in the third quarter. This figure surpassed General Motors' sales, especially with the increased production of the Mustang Mach-E model. Sales of the Mach-E model increased by 42.5% in the third quarter, reaching 5,872 units in September.
Although Ford's electric vehicle sales lag far behind Tesla, which is the leader in the US market, it shows that the company is increasing its share in the EV market. Ford aims to sell a total of 80,000 electric vehicles by the end of the year.
Why Did Ford's Electric Vehicle Loss Occur?
Ford's losses in its electric vehicle division widened in the third quarter even as the company's EV sales increased. The company announced an operational loss of $1.3 billion. This amount is more than the $1.1 billion loss in the second quarter and more than double compared to the same period in 2022.
This means that Ford loses approximately $36,000 for each electric vehicle. This figure is higher than the estimated loss of $32,350 in the second quarter. Ford expects a total loss of $4.5 billion for its EV division by the end of the year.
The reasons for Ford's electric vehicle loss are the company's investments in next-generation EVs and competition in the market. Additionally, as the company notes, many customers in the US are not willing to pay more for EVs than gasoline or hybrid vehicles. This reduces EV prices and profitability.