Here's the Staggering Amount of Money Ford Loses on Each EV It Makes
Unless investors have closed their eyes and covered their ears, they've likely heard that electric vehicle (EV) sales growth in the U.S. market has slowed to a crawl. That's become a big headache for major automakers such as Ford Motor Company (NYSE: F), which had planned to invest billions of dollars into its EV segments and battery factories.
The news gets a little worse, as a recent report just noted the staggering losses per Ford EV -- but the company is taking action to offset those costs. Let's dig in.
If you merely glance at Ford's first-quarter results, you'll see just how much of a drag its EV unit, Ford Model e, was on results. Earnings before interest and taxes (EBIT) for Ford Model e in the first quarter checked in with a $1.32 billion loss. A source told Bloomberg recently that Ford's losses per EV topped a staggering $100,000 during the first quarter, which was reportedly more than double the loss per EV last year. One issue is simply the high costs -- including batteries, which remain one of the largest costs of EVs. Ford will need to scale its EV production to help lower costs.
Source Fool.com
