Ford Reports Massive Loss on Every Electric Vehicle It Sold

Ford's electric vehicle division, Model e, reported a loss of $1.3 billion in the first quarter of 2024, totaling $132,000 per vehicle sold. Despite a 20% decrease in sales compared to the previous year, the company attributed the losses to the recent price cuts across the EV industry, which significantly impacted revenue. These findings demonstrate the profit pressures faced by EV manufacturers as a whole.

The report further highlighted that used electric vehicles are depreciating 10 times faster than gas-powered vehicles. A recent study by iSeeCars found that the average price of a used EV dropped by nearly 32% in the past year, compared to a 3.6% decline for gas-powered vehicles. The staggering depreciation rate underscores the challenges EV manufacturers face in encouraging consumers to adopt EV technology.

In contrast, General Motors reported a significant jump in profits for the first quarter, highlighting the strength of its gas-powered vehicle business. Slow growth in EV sales and robust sales of conventional vehicles raised its profit to $3 billion, a 24 percent increase from the previous year.

GM's profitable report comes at a time when the electric vehicle market continues to struggle, with Ford and other automakers facing challenges in making EV sales profitable. However, GM remains committed to its EV plans, despite consumer skepticism and the declining market.

The challenges facing the electric vehicle market are evident, including the lack of charging infrastructure, limitations of the electric grid, and the scarcity of natural resources used in EV construction. Until these issues are resolved, electric vehicles will remain a niche market.

What do you think about the future of the electric vehicle market? Do you think they will become a more common form of transportation? Share your thoughts in the comments below!