Ford losing $100,000 per every electric vehicle: Report
Ford Motor Co is reportedly losing whopping $100,000 per every electric vehicle.
According to Bloomberg, Ford has begun cutting orders from battery suppliers to stem the losses.
Quoting officials, Bloomberg reported that the company «have slashed thousands in costs from their EVs to try to make them profitable, but they’ve also had to slash prices to remain competitive against market leader Tesla Inc., which has aggressively discounted its models».
Ford is also fast-tracking the development of small EVs that will start at $25,000 and debut in late 2026, Bloomberg has reported.
Last month, CEO Jim Farley said EVs are «a huge drag not just on Ford, but on our whole industry».
The carmaker recorded a $1.3 billion operating loss for its EV and software division in the first quarter. More broadly, executives expect this section of the company to sustain a pre-tax loss of between $5 billion to $5.5 billion for the year.
In the near term, hybrids are a top priority for Ford to ease customers into a battery-powered future, and the auto company aims to increase hybrid sales by 40% this year and quadruple them in the coming years.
Farley said he has walked back some of the Ford's EV ambitions to better match consumer demand. This month, Ford delayed the planned launches of three-row EVs in Canada and its next-generation electric pickup truck built in Tennessee. Executives have said they will not launch the next generation of Ford’s EVs until they can be profitable.
The EV business has proven tough not just for legacy
