Ford is Losing $22,000 Per EV Sold

Ford has reported its financials for its electric car business. Ford sold 96,000 electric cars in 2022 and made $5.3 billion in revenue. They had a net loss of about $2 billion.

Ford wants to catch up to where Tesla is in 2023 in 2027. Ford wants to grow EV sales by 83% each year.

Any legacy auto company that is selling less than 1 million cars per year is likely not profitable.

Ford needs to not only scale to 2 million cars per year but redesign its electric cars and improve its batteries to reach profitability. Having volume production is the most important part to get more profitable but redesign and better batteries are also needed. This also assumes that electric vehicle price competition is not stronger than Ford expects.

10 thoughts on “Ford is Losing $22,000 Per EV Sold”

  1. Well. Since I believe that the majority of larger personal/ business road vehicles – SUVs, various vans, and pick-ups will be hybrids after 2030, one needs to ask whether it is easier for Ford, etc., to bring a hybrid (i.e. ICE, FC, eFuel, etc., as primary or range-extender) assembly to profitability or for an exisitng 100% EV company to pivot some or all of its products to hybrid and be profitable on those models. The Project T3 looks pretty-good by the way – CyberT killer?

  2. We call this a ‘start up’. It happens with new technology or a transition to new technology. Everything is going to work out fine. You’ll miss an ICE car in the future just as much as you you’ve missed whale oil lamps when you replaced them with electric lightbulbs.

  3. I’m expecting the whole electrification Thunberg craze to anneal into coexistence where ICE and electric exist side by side forever and ever. Seven billion people will continue to need Ford/Isuzu/Honda/etc. ICE powered vehicles basically forever, while the one billion richest can pick up their lattes and whole foods in whichever electric vehicle appeals to their aesthetics. GM sold the same car 7 different ways (Olds, Chev, Pontiac, Buick, etc.) for half a century based on aesthetics. According to my hairstylist (we don’t have barbers anymore), “aesthetics is everything.”

  4. This isn’t a shocking revelation, it takes time to make a EV profit, converting factories to electric isn’t cheap. Tesla was in a red for many many years, and now they are in great shape. Ford can (& I think will) come out of this in the green, but it takes awhile to recoup the big EV investment.

  5. Still ,a very profitable company,they just lose money in the E segment,50% growth per year,in no time ,they’ll earn trillions.

    • Bleeding off plateauing or diminishing ICEV profits to subsidize massive EV losses? Yeah, that’s sustainable. What you’re describing is Tesla’s growth rate and future profits. Just think about it: if Ford wants to be in 2027 where Tesla is now, where da fuk do you think Tesla will be in 2027?!

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