Ford’s Massive $5B Electric Vehicle Loss: Price Cuts, Research Funding to Blame

Ford’s electric vehicle (EV) division recorded a loss of $1.3 billion during the first quarter of 2024, equating to approximately $132,000 per car sold due to price cuts and research funding allocations. The automaker saw its EV revenue decline by 84% year-over-year, reaching just $100 million in Q1. Ford anticipates a total loss of $5 billion this year from the production and sales of electric cars as prices remain steep compared with conventional combustion engines that offer better affordability to customers worldwide.
Last year, the company reported an EV division loss of around $4.7 billion or roughly $40,525 per vehicle sold in 2023. Meanwhile, Ford Pro’s internal-combustion model sales unit posted a profit worth $3 billion during Q1 2024. The overall revenue for the Blue department was recorded at $21 billion but still represented an annual decrease of around 13%.
The United States EV market witnessed impressive growth in the first quarter, with over 352,390 plug-in cars sold across all manufacturers combined; Ford’s sales only contributed approximately 10,000 units to this figure. Toyota seems to be dominating the industry as it reportedly accounted for around half of total EV sales during March alone while boasting a Q1 market share of roughly 36.6%, representing an impressive year-over-year increase of almost three quarters (74%).