Ford lost $1.3 billion in a quarter, a loss of $132,000 on every EV sold

Jo Nova

Ford lost $1.3 billion in a quarter, a loss of $132,000 on every EV sold

By Jo Nova

April 27, 2024

Excerpt:

Remember when Ford was just losing $38,000 on every EV? Those were the good days

The biggest star in the automotive world at the moment is a black hole, and it’s swallowing whole industrial giants. It’s hard to imagine a faster way to sabotage whole nations than to disguise your spies as academics and environmentalists. Then get them to convince the government to command a whole new market into existence a highly technological field with the wave of a legislated wand.

These numbers are astronomical:

LINK

===================

EV's will never be more than a niche vehicle in its present set up and unnatural market atmosphere brought on by the tyrannical stupidly incompetent governments.

 

What is that they say---the first pill costs $3.5B to make. It is the second one that costs 28 cents. Anyway, googling around it appears as its losses were on the model e series sold to consumers. They had gains in their fleet EV sales volume and posted an overall profit for the quarter.

All that said, the only thing I would want less than a Ford is an electric Ford.

 

I'm not a FORD fan, but your link is extremely misleading. Take the total spent ($1.3 Billion), and divide that by the number of vehicles sold to come up with a "loss per vehicle". Does that mean that every future sale is 100% profit?

I wish I could purchase a BYD EV in this country for what they sell elsewhere. They know how to make quality, safe EVs at affordable prices. They source everything from the raw materials to the final product.

 

if Ford and others would make basic cars and trucks (both ice and ev), then they would be cheaper and more reliable to own

all this digital stuff makes them cost more than many can afford, and the upkeep costs to keep a car for 20+ years is much higher, which ruins the used car market or those that drive a car\truck for 20+ years

 

Ford made money on their traditional (ICE) business and (especially) their commercial business but lost on their EV business.

CNBC
Ford tops first-quarter earnings estimates as commercial unit offsets EV losses

 

From the article you didn't read which is why your endless dishonest cheerleading of the EV industry is destroying your credibility.

and,

 

China has given BYD close to $4B to try to make their EV's the most popular in the world. That is why they are so cheap--one massive subsidy. Anyway, the answer to your question is of course not. For reasons known but to God, Ford adopted the Tesla pricing model that the MSRP for its EV is its price. Dealerships had little interest in pushing them without the holdback. They have just started allowing dealers in the first quarter advertise (and sell them) them for less than MSRP, this created part of the loss because the dealers won't have to pay Ford their full contract price for the unsold cars at the MSRP or thereabouts themselves if they don't get sold.

 

The US is giving subsidies also, as are most other countries. Everybody wants a slice of the ever- increasing EV sales. EVs are an important part of climate solutions and regional pollution solutions.

 

Is there such quality why do you think they don't sell them here? I bet they wouldn't pass our safety standards. Do you have that Evie that's a rip off of the Porsche tie can they've been out for 3 weeks and they're already starting to fall apart on the road.

 

I think they're coming to a close now that we've reached saturation with them sales are down the number one EV producing company in the US is 3 years away from bankruptcy.

It's a pity because there are people that like EVs .

 

You are calling others dishonest and destroying credibility???

Here's fords Q1 report.

...

News
Customers Find Appeal in ‘Freedom’ of Ford Powertrain Choices,
Contributing to Solid Q1 Results, Setting Up Strong Full Year
• Ford reports first-quarter revenue of $42.8 billion, net income of $1.3 billion, and adjusted
EBIT of $2.8 billion
• Revenue from Ford Pro commercial customers jumps 36%, EBIT more than doubles, with
high demand for Super Duty work trucks, Transit vans and software/physical services
• Ford Blue’s strong global product lineup includes new versions of F-150 and Ranger trucks;
hybrid volumes on pace for 40% full-year growth
• Company declares second-quarter regular dividend of 15 cents per share
• Full-year adjusted EBIT tracking to high end of $10 billion to $12 billion; adjusted FCF target
raised to $6.5 billion to $7.5 billion; CAPEX guidance tightened to $8 billion to $9 billion
https://s201.q4cdn.com/693218008/fi...24/q1/Q1-2024-PRESS-RELEASE-4-24-24-FINAL.pdf

 

There are always temporary sales lulls especially after all the recent huge sales increases.

But yes, you are correct. Most EV owners are very happy with their EVs!

 

I didn't want the independent manufacturers going down like Tesla and rivian. I like that there are options. But they are Fighting for 1% of the market

 

was that because of the way the owner been acting as of late though... or something tesla did differently

 

That's the whole idea. Disposable cars that cost way too much up front and way too much to repair.

 

Your numbers are off by a factor of about 7. See chart below. 16% of sales were hybrid, electric, or plug-in hybrid. About 7% were full electric. You really should do some research, before putting any NUMBERS on the screen. BTW, Biden is shooting for 50% EVs by 2030. That's a tough challenge, and I think the combination of the three mentioned is more realistic. And that makes sense, as ICEs are extremely inefficient by not capturing braking power.


https://www.eia.gov/todayinenergy/detail.php?id=61344

 

is that just new cars because that doesn't represent all of the market. There is this enormous used market and a little less than 1% of vehicles registered are electric. So if you're talking about just the new market which doesn't represent all of the market then maybe.

you shouldn't assume that I'm strictly talking about the new car market.

I think that's a bit far-fetched

they are fantastically efficient at being vehicles but maybe this one little thing that you can find a little more efficiency than something else sure but there are trade-offs. You will make up for that loss of power braking when you take 5 minutes to fill it up. And you don't have to rent anything if you want to drive a significant distance away.

Most people aren't really that impressed with the little physics gimmicks

 

That is an interesting report but that doesn't cover what CNN was talking about again it is about the 10,000 sold the first three months of this year of a specific EV class of vehicles the Model E

and,

red and black bolding mine

 

I don't have any problems with people wanting to buy an EV, what I object to is the government forcing the sales with over the top subsidies/tax breaks and outlawing ICE vehicle by market fiat in a few years from now which is part of the reason why the sales market is slowly falling apart.

 

Ah yes, on 1 of the models.

...
To put these numbers in perspective, Ford Pro made approximately $7300 for each of the more than 400,000 vehicles it sold after accounting for expenditures but not interest or taxes (EBIT). Ford Blue pocketed close to $1400 for each of the more than 600,000 vehicles it sold under the same conditions.

Model e, on the other hand, lost close to $130,000 per vehicle on the approximately 10,000 EVs it moved in the first quarter of 2024. And that's before putting interest or taxes into the equation.

...
Why the big hit to revenue then? Ford blames the losses on the price cuts it made to its EVs in response to changing market conditions. With the battery-electric space continuing to grow, Ford may find itself in a position to need to cut prices again—something it appears that the automaker quite literally cannot afford to do.

https://www.caranddriver.com/news/a60621256/ford-ev-revenue-losses-q1-2024/

...
Looks like Ford may need to rethink their production costs strategies. As prices for EV vehicles keep falling, according to the article.

Or maybe exit EV vehicles altogether.
I guess that depends on EV growth over the next decade.

 

Complaining about modest EV subsidies, while ignoring all the oil subsidies is disingenuous. Example - $6 Trillion GW oil war. EVs help our breakaway from these dangerous policies.

 

The Iraq war had nothing to do with oil.

 

Why do you promote the common lie of Oil subsidies when they are TAX breaks which often later gets paid back, it has shown repeatedly to be this way, but the subsidy myth never goes away.

Government should NOT be involved in free enterprise decisions that is up to the seller and buyer.

 

~ Your new "car" has arrived ...

​

​

 

~ Same is true about solar panels.