Ford is persisting with its commitment to electric vehicles (EVs) despite heavy losses reported by its Model e unit in the first quarter. The EV unit, named the Model e, saw its revenues plummet by 84%, reaching nearly $100 million in the first quarters. This decline was primarily attributed to EV price cuts. Notably, the Model e unit recorded $1.3 billion in losses before interest and taxes (EBIT) were considered.
With approximately 10,000 units sold, the company suffered a loss of $132,000 on each EV sold. The EV market has experienced a slowdown, as acknowledged by Tesla, which has faced its own pressures within the industry. However, both Ford and Tesla are intensifying their focus on electric vehicles. Elon Musk, CEO of Tesla, expressed his belief that electric vehicles will ultimately dominate the market during the Q1 2024 earnings call.
Concurrently, Ford’s CEO, Jim Farley, confirmed the company’s plans to develop new affordable electric vehicles during its Q1 2024 earnings call. It’s rumored that Ford is working on an affordable electric truck, compact SUV, and a ride-hailing vehicle. Affordability is a key focus for automakers, particularly in the context of electric vehicles. Ford aims to price its next EV in the range of $25,000 to $30,000, with plans to launch the new vehicle by late 2026.