Ford Loses $135,000 On Every EV

According to CNN, Ford lost $135,000 on each EV it sold in the first quarter. The math is simple: Ford’s EV division lost $1.3 billion. It sold approximately 10,000 EVs. The math may be faulty. Other estimates are that 20,233 EVs were sold in the quarter. Based on Ford’s press release for the quarter, CNN is accurate.

EV Challenge –Is It Repairs?

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To make matters worse, Ford said its EV division would lose $5 billion to $5.5 billion for 2024. It is improbable that it will make money in the division next year unless sales soar and production costs fall. 

Greenhouse Emissions

If EVs are supposed to be the car industry’s wave of the future and a major way to cut greenhouse gas emissions, consumer sentiment will need to swing heavily in favor of ownership of EVs. Today, that trend is crippled by high car prices, limited charging stations, and ranges that can be as low as 200 miles a charge. Some consumers are unaware of other price challenges, including the fact that EVs need new tires more often than gas-powered cars. 

Big Car Companies

Climatecrisis247 believes that the EV prospects of the world’s largest car companies will be a financial challenge, probably for years. While companies like BYD and Tesla, which started as EV manufacturers, are likely to continue to profit, losses at companies like Ford, GM, and most Japanese, German, and South Korean manufacturers may slow the rollout of EVs. 

Major manufacturers will also need to put billions of dollars into their EV R&D and production costs after making similar investments in the past. As this occurs, the real growth in EVs and reductions of greenhouse emissions that accompany this may be from inexpensive Chinese EVs.