89.8 F
New York
Sunday, June 23, 2024

Electric Vehicles Bleeding Red Ink: Ford Is Losing Billions on EVs

Related Articles


Must read

Getting your Trinity Audio player ready...

Alana Mastrangelo(Breitbart)

Ford Motor Company says its electric vehicle (EV) unit, “Ford Model e,” is losing billions of dollars, and should be viewed as a startup company.

Model e has lost $3 billion before taxes over the last two years, and is expected to lose another $3 billion this year as the company invests in the new technology, according to a report by Associated Press.

James Farley, president and chief executive officer of Ford Motor Co. Photographer: Emily Elconin/Bloomberg

In 2021, Ford’s Model e unit had pretax losses of $900 million. And in 2022, that number was $2.1 billion. Ford reportedly believes Model e will be profitable before taxes by late 2026, with an eight percent pretax profit margin.

“As everyone knows, EV startups lose money while they invest in capability, develop knowledge, build (sales) volume and gain (market) share,” Ford Chief Financial Officer John Lawler said.

Lawler added that Model e is working on second- and third-generation electric vehicles. Currently, Ford offers three EVs for sale in the United States: the Mustang Mach E SUV, the F-150 Lightning pickup, and an electric Transit commercial van.

Last month, Ford announced that an unspecified potential battery issue has led the company to stop producing and shipping its electric F-150 truck model.

In October, a Detroit News review of the Ford F-150 Lightning electric pickup truck found that the vehicle’s “kryptonite” is a road trip. Auto critic Henry Payne explained that the electric truck got him “170 miles of range” on a trip up interstate 75 in Michigan, while its gasoline-powered counterpart gets drivers “600 miles and 22 mpg.”

The auto critic explained that he had charged the vehicle overnight to 100 percent, giving it a 320-mile range. He then ran a few errands the following morning, and started his road trip with 281 miles on hand.

But by the time he got to Saginaw, “the Lightning was getting just 60% of estimated range and it was becoming clear to the trip computer that we would not make it to Gaylord,” Payne said, adding that the “281-mile range looked more like 168 miles.”

The system then rerouted Payne to a charging station, but when he arrived, the only two chargers there were already occupied. So he drove to another facility that he knew had four charging stations. When he got there, unfortunately, two were occupied and the other two were being worked on by technicians.

Breitbart News will continue to report on the folly and danger of electric vehicles.

You can follow Alana Mastrangelo on Facebook and Twitter at @ARmastrangelo, and on Instagram.

balance of natureDonate

Latest article

- Advertisement -