Ford Losing Billions on EV’s

[Puch]

Just saw an article about how ford is losing billions on EV’s but still made a profit.
Must be all those $100k Bronco that are saving them??

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[sharpsicle]

Can you link the article? When I see things like this, usually on reading the actual article I find that it's click-bait hyperbole.

To put it in perspective, Ford's annual revenue is north of $150B, so it may be a literal drop in the bucket when amortized across all the places they're investing in EV. No new development comes without investment.

 

[Gren71]

That or some crazy accounting where they’re running things like Amazon. Intentionally losing money on selling some things to write off the losses and offset massive profits elsewhere.

 

[bleda2002]

I actually found this quote interesting showing how hard it is to be profitable as a car company in general:

While both the Mach E and the F-150 Lightning EV pickup have a long list of waiting customers, Ford CEO Jim Farley said during an earnings call earlier this year that Ford encountered numerous problems with their production, making the ramp up of EVs much more expensive than it had anticipated.

“We didn’t know that our wiring harness for Mach-E was 1.6 kilometers longer than it needed to be. We didn’t know it’s 70 pounds heavier and that that’s [cost an extra] $300 a battery,” he said on a call with investors. “We didn’t know that we underinvested in braking technology to save on the battery size.”

The issue is more the teething problems and infrastructure it seems, i'm sure they're eating huge costs on setting up lines, new plants, new r&D and then having trouble actually making trucks to offset since they're literally selling these things as fast as they can make them.

 

[Puch]

Can you link the article? When I see things like this, usually on reading the actual article I find that it's click-bait hyperbole.

To put it in perspective, Ford's annual revenue is north of $150B, so it may be a literal drop in the bucket when amortized across all the places they're investing in EV. No new development comes without investment.

It was a Breitbart article. For some reason when I past the link, it doesn’t open?? Should be easy to find on their site. It’s a new story.
Yes, all new tech comes with initial investment and time before profit. Not arguing that. Just think it was funny how Ford (any car maker) can lose Billions and still be profitable.
The article says that the model e will be profitable by 2026. The morning news reported that Ford is still profitable.

 

[sharpsicle]

It was a Breitbart article.

Ugh. Hard pass.

Was hoping it was a more legitimate source.

 

[Puch]

Ugh. Hard pass.

Was hoping it was a more legitimate source.

Did you even read it? I might be able to find a similar article on CNN if you want.

 

[Puch]

Did you even read it? I might be able to find a similar article on CNN if you want.

Maybe this will make you feel better.
https://fortune.com/2023/03/24/ford-motors-projects-loss-electric-vehicles-tesla/

 

[Puch]

Maybe this will make you feel better.
https://fortune.com/2023/03/24/ford-motors-projects-loss-electric-vehicles-tesla/

Or this
https://www.wsj.com/articles/ford-projects-3-billion-loss-on-ev-business-for-2023-98037e4e

Maybe this?
https://www.cbsnews.com/news/ford-ev-unit-losing-billions-should-be-seen-as-startup/

 

[jay21mojave]

Stellantis CEO Carlos Tavares Breaks Down the True Cost of All Its New EVs
The exec lays it out during 2021 earnings call: "Make no mistake, EVs cost more to build."
www.motortrend.com/news/stellantis-jeep-dodge-2021-earnings-update-ev-cost/

 

[sharpsicle]

https://www.cbsnews.com/news/ford-ev-unit-losing-billions-should-be-seen-as-startup/

Thanks, this is much more reliable. I appreciate it.

Definitely shines some light on how much innovation cost these days. Also should give confidence to anybody about the development of the EV market in the future.

 

[Pescatoral Pursuit]

Just saw an article about how ford is losing billions on EV’s but still made a profit.
Must be all those $100k Bronco that are saving them??

$1.7 trillion covers a lot of losses while you impose a political agenda.

 

[Lunentucker]

The Breitbart article links directly to an AP article. ?
https://apnews.com/article/ford-electric-vehicles-losses-3c988ff882b675fdaf4f59eb140c2171

Take a sip.

 

[Rahkmalla]

Stellantis CEO Carlos Tavares Breaks Down the True Cost of All Its New EVs
The exec lays it out during 2021 earnings call: "Make no mistake, EVs cost more to build."
www.motortrend.com/news/stellantis-jeep-dodge-2021-earnings-update-ev-cost/

I get there are multiple articles from multiple sources, but reality is I trust car manufacturer's accounting about as much as I trust Hollywood accounting for when a movie makes and loses money. Convincing people EVs cost more to build is useful for keeping perceived barriers to entry high, keeping customers thinking they are buying a premium product for less than it cost to make, and keeping MSRPs high as the next round of EV tax credits expire.

 

[Lunentucker]

As for "Innovation", that comes from true free market Capitalism.
Kind of the polar opposite of the current EV situation.

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