Ford is losing almost $60,000 per EV it sells

Ford is also predicting the company to register a $3 billion operating loss for EVs in 2023.

Ford recently revealed its earnings for the first quarter of 2023. According to reports, the American car brand's EV operations seem to be losing out heavily, while its ICE and commercial vehicle sales are what's keeping the company profitable for now.

The American car giant listed the earnings of each of its three divisions: Ford e, Ford Blue and Ford Pro. As the names suggest, Ford e looks after the brand's electric vehicles and digital connectivity, Ford Blue deals with ICE-powered passenger vehicles, while Ford Pro is the commercial vehicles division.

As per the earnings reports, Ford e lost $700 million in the first quarter of 2023, registering just 12,000 EVs during the period. This translates to losing an average of $58,333 per electric vehicle sold in the first 3 months of 2023. This is compared to the brand's revenue during the first quarter of 2022, when it registered $1.6 billion.

The reason for the loss is due to the reduced volume because of the scheduled downtime at Ford's plant in Mexico, which produces the Mustang Mach-E. The temporary shutdown is to help increase the plant's production output to 2,10,000 per year by the end of this year. The carmaker is also said to be haemorrhaging cash to scale production. Ford is said to have spent $3.5 billion on its battery plants in Michigan, as well as its Tennessee plant, which will produce Ford's next-gen electric truck in 2025 with a capacity of 500,000 units per year.

Ford Blue, on the other hand, reported a gross income of 2.6 billion in the first quarter, led by the F-150. Ford is also America's leading truck manufacturer, producing one every 30 seconds. This combined with Ford Pro, helped the carmaker register a profit with a 4.2% net income margin.

Ford is also predicting the company to register a $3 billion operating loss for EVs in 2023. However, with production and facilities scheduled to improve, Ford is hopeful to turn things around in the coming years.

Source: CarScoops