Ford Motor Company disclosed a significant $132,000 loss on each electric vehicle (EV) sold in the first quarter of 2024, totaling a $1.3 billion loss. The decline was attributed to a 20 percent decrease in sales volume and price reductions due to low consumer demand. The company’s EV unit reported an 84 percent drop in revenue for their EV car, the Model e, citing industry-wide EV price cuts as the primary reason.
This loss trend is consistent with Ford’s overall performance, with the Model e reporting a full-year EBIT loss of $4.7 billion on the sale of 116,000 units, resulting in an average loss of $40,525 per vehicle. Company officials now anticipate a total loss of $5 billion for their EV division in 2024, higher than the previous year’s $4.7 billion loss.
Experts and commentators expressed concerns about the sustainability of Ford’s EV operations, with some calling it a “massive EV disaster.” In response to these challenges, Ford announced a delay in producing two new electric models and a shift towards hybrid vehicles instead. Analysts attribute the struggles in the EV market to companies rushing into the segment with expensive products that lacked substantial consumer demand.
