Ford's EV Losses Mount Despite Sales Growth
Electric vehicles are still struggling to achieve profitability due to the high costs associated with battery production, which remains the most expensive component in these cars. Even Tesla, the industry leader, did not start making a profit until 2020.
Last month, General Motors announced that it had finally begun generating some profit from its electric vehicles.
Meanwhile, Ford"s "Model e" division, responsible for zero-emission vehicles, faced significant difficulties in 2024 and is expecting another challenging year.
While announcing its financial results for 2024, Ford admitted to incurring an annual loss of $5.1 billion in earnings before interest and taxes (EBIT). The situation may become even tougher this year, as the company expects losses in the "Model e" division to range between $5 billion and $5.5 billion.
Despite these negative figures, Ford remains optimistic due to its significant investments in electric vehicles. The company also reported achieving "$1.4 billion in cost improvements" in the "Model e" division last year.
Although the "Model e" division continues to suffer major losses, Ford"s EV sales in America grew by 34.8% last year, reaching 97,865 units. Additionally, hybrid vehicle sales increased by 40.1% to 187,426 units. However, gasoline-powered vehicles remain the backbone of Ford’s operations, with sales reaching 1,793,541 units, reflecting a slight 0.2% increase compared to 2023.
