Forwarded this email? Subscribe here for more Ford Outperforms Expectations, Losing Only $50k per Unit in EV Division David Blackmon Jul 25 READ IN APP Upgrade to paid Ford Motor Company famously lost more than $100,000 per unit sold during Q1 2024 in its Model e EV division. In yesterday’s earnings call, CEO Jim Farley was able to report great improvement, noting that Model e lost just $50,000 per unit sold for the year’s second quarter. Share You just cannot make this stuff up, folks, don’t even try. Here’s an excerpt from a story at The Telegraph: Ford loses nearly $50,000 (£38,700) on every electric car it sells, results from the company show, as traditional manufacturers struggle with the switch away from petrol. The company posted a loss of $1.1bn for its electric vehicle division, Ford E – equivalent to about $47,600 per car. It sold 23,957 electric vehicles (EVs), an increase of 61pc from a year earlier. The numbers contributed to a torrid first half in which Ford E lost $2.5bn, with the business on track to lose $5bn overall this year. Ford blamed a price war across the industry for the loss, which came despite efforts to slash costs by $400m. The stark figures underline the huge sums of cash even mass market car manufacturers are burning through as they electrify their product line-ups. The $50,000 loss per car was first reported by industry expert Robert Bryce in his Sub stack newsletter. Battery-powered cars are more expensive to produce than their internal combustion engine counterparts, complicating government efforts to slash carbon emissions by mandating their sale in greater numbers. Meanwhile, a wave of Chinese rivals are seeking to enter the market with cheap mass-produced EVs of their own. Meanwhile, carmakers are being forced to sell EVs at big discounts to shift them, according to monthly data from Auto Trader. Stellantis has accused the Government of moving ahead of consumer demand and threatened to close its factories in the UK if the regime is not relaxed, amid complaints the targets risk pushing its British division into the red. Mike Hawes, chief executive of the Society of Motor Manufacturers and Traders (SMMT), which represents the industry, also warned that a failure to offer financial incentives to consumers would force car makers to continue swallowing losses. [End] It’s a real financial bloodbath, just as Donald Trump predicted, and there are no signs it will do anything but accelerate from here. That is all.