Ford Lost Over A Billion Dollars On EVs Last Quarter Alone

Ford has shared its financial results for Q1 2024, and it’s a bit of a mixed bag, with varying performance across the automaker’s three divisions. While the Ford Pro and Ford Blue sectors raked in plenty of cash, the electric Model e division remains a financial black hole, with a staggering $1.3 billion loss between January and March. That’s roughly double what the Blue Oval lost during the first quarter of 2023.

The Dearborn-based automaker chalks these losses up to the declining electric vehicle market, singling out “significant industry-wide pricing pressure” and plummeting wholesales. To remain competitive and lure customers into showrooms, Ford has had to reduce the pricing of the Mustang Mach-E and F-150 Lightning even further, shaving thousands of dollars off their list prices. As a result, Ford lost more than $130,000 on each EV it sold in the first quarter.

Latest Figures Don’t Look Good For Ford Model e

Even though Ford EV sales fell by 20% in the first quarter, Ford Model E revenue plummeted by 84% to $100 million. However, the losses don’t end there, with the automaker anticipating EBIT (earnings before interest and taxes) losses to sit between $5 billion and $5.5 billion for the electric division.

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Electric vehicle sales have declined across the board, resulting in several brands – including Mercedes, General Motors, and Jaguar Land Rover rethinking EV strategies. Hybrids and PHEV sales remain strong, providing consumers with eco-friendly alternatives that don’t cost a fortune. This is reflected in strong sales of Ford’s electrified vehicles. Sales of Ford hybrid vehicles increased by 36%, and full-year hybrid sales are projected to grow by 40%. The Maverick was America’s best-selling hybrid in Q1 2024.

Things Look Better At Ford Blue And Ford Pro

It may be some time before Ford’s Model e division turns a profit. Even though the company has reduced investments in battery-electric vehicles, the Blue Oval announced earlier this year that it was working on a low-cost EV platform. This will underpin several cars aimed at Tesla and several Chinese EV marques. Hopefully, these vehicles will boost Ford Model e revenues.

Elsewhere, the Ford Pro division was the biggest money spinner for the automaker, posting an EBIT of $3 billion. Revenue from this division was boosted 36% to $18 billion in the first quarter. Sales are stronger than ever, with 409,000 Ford Pro vehicles sold, representing a 21% increase. As for Ford Blue, EBIT, revenue, and quarterly wholesales were down for the first quarter. The automaker notes this was “affected by the production ramp and vehicles in inventory of the new 2024 F-150 pickup.” However, the automaker notes deliveries of its updated bestseller have already begun. With an EBIT of around $900 million and segment revenue of $21.8 billion, Ford Blue remained profitable for the last quarter.