Ford Motor Company's electric vehicle, Model e, experienced significant financial losses in the first quarter of the year, reporting a loss of $1.3 billion. That's $132,000 for each of the 10,000 EVs it sold in the first three months of the year.
Ford's Model e's financial results show a 20% decrease in units sold and an 84% drop in revenue.
The sales declines were attributed to aggressive industry-wide price reductions for EVs, as the company lowered prices to remain competitive amid a broader price war in the EV market.
Despite efforts to reduce manufacturing costs—such as cutting $5,000 per Mustang Mach-E—revenue losses outpaced cost-cutting measures. Over the previous year, the cumulative losses for Model e amounted to $4.7 billion across 116,000 vehicles, averaging a loss of $40,525 per vehicle.
Ford's traditional vehicle units, particularly Ford Pro continued to perform strongly. Ford Pro, selling primarily internal combustion vehicles, reported a substantial increase in earnings before interest and taxes (EBITA) to $3 billion, doubling its performance from the previous year.
As reported in previous MMRs, Tesla's earnings have dropped, highlighting the EV industry's economic pressures.
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