But, but, but, everyone wants one, right? They’re cost effective?
Ford set to lose $4.5 billion on electric vehicles this year, despite increased revenue
Ford Motor Company announced it is projected to lose a whopping $4.5 billion from electric vehicles (EVs) this year, up from the previous projected loss of $3 billion.
The company released its second-quarter financial results on Thursday. The U.S.-based automaker’s EV division, called “Ford Model e,” has lost $1.8 billion so far this year, according to Fortune.
The projected $4.5 billion loss is over twice as much as Model e’s $2.1 billion loss in 2022. The company recently announced that the price of its electric F-150 Lightning pickup trucks will be reduced due to cheaper raw battery materials.
The company touted that its low EV prices “establish[es] leadership ahead of industry’s next-generation EVs” and that the Ford Model e’s revenue is up 39%. Ford is also expected to produce 600,000 EVs per year by 2024.
“The near-term pace of EV adoption will be a little slower than expected, which is going to benefit early movers like Ford,” Ford CEO Farley said in a press release. “EV customers are brand loyal and we’re winning lots of them with our high-volume, first-generation products; we’re making smart investments in capabilities and capacity around the world; and, while others are trying to catch up, we have clean-sheet, next-generation products in advanced development that will blow people away.”
See, if the government could just force you peasants into purchasing an EV, then Ford could jack the price up thousands as Government offers tax incentives.
I wonder why Ford is getting crushed while Tesla is not? Anyway, don’t forget that the hardcore Warmists want to ban all private ownership of vehicles, even EVs.
Everybody’s pushing EVs these days…. when the battery dies miles from home. :-)
95% of electric vehicles are still on the road… the other 5% made it home.
Also in the FOX article:
Dear Elwood:
No matter. A loss is a loss.
You may not understand. The EVs lost money, but overall Ford made money.
Yes overall Ford made money thanks to their truck division. Had it not been for their small trucks the 150s, 250s and such the entire company would have been in the red. EV’s are losing money all over. They cost too much to build they cost too much to maintain they require too much time to charge their batteries. Resale value is practically nothing and they’re catastrophic to get rid of. In fact in the future it will be a major economic and ecological disaster with leftover batteries and parts from EV’s. They also close a danger in storage and on the roads because of their potential fire hazards.
In other words give us gas and diesel and keep your EV’s to yourself.
Dear Elwood:
Evidently, you’ve never been in business.
The profit was reduced by a $4.5 billion loss caused by the EV division.
Teach the reason Ford is losing money is because they are still a beginner in EVs
Tesla also lost major money in its first years.
Mr Lewis
Sometimes in business accounting you do not always want to maximize “profits”
Profits are taxed. Perhaps better
for long term shareholder value you go for reinvesting in a future technology. As a business owner do you wish to maximize your tax liability ? I didn’t.
Righto, johnnie boy!
How’s that “Hookahs ‘R’ Us” franchise deal working out for ya?
Dear H:
For whatever reason the EV division lost $4.5 billion.
That’s money that could have gone to the stockholders or invested in new products besides EV’s.
They’re betting the farm.
And the stockholders will lose their assess.
Everybody is a beginner in EV’s at this point. The market is not well defined, the tech is evolving, and while Ford has been paying dividends, hits like this are going to get the attention of investors.
Tesla, Rivian, And Nikola are not currently paying dividends and are generally burning cash. Their positions are improving, but they are still regarded as ‘speculative’. I don’t follow some of the other EV companies, and won’t comment, but I haven’t seen anything to cause me to buy their equities. If institutional investors start dumping Ford, there could be issues.
EV’s are still a niche market and I see them looking for their place in the market. EV’s are not yet ready for ‘prime time’ and won’t be for a while, regardless of what Brandon says.