Ford Is Losing Roughly $60,000 For Every Electric Vehicle Sold
JOHN HUGH DEMASTRI
CONTRIBUTOR
May 03, 2023
00:01 / 00:30
Ford lost tens of thousands of dollars per electric vehicle sold in the first quarter of 2023, as the division remained on track for roughly $3 billion in yearly losses, according to the company’s Tuesday evening earnings report.
Ford’s electric vehicle division — which was separated from its traditional gas and professional-grade vehicle departments in a late March reorganization — lost $722 million in the first three months of 2023, while selling just 12,000 units, according to the company’s first quarter earnings report. This amounts to a roughly $60,167 loss for each vehicle sold, according to calculations made by the Daily Caller News Foundation. (RELATED: Major Automaker Expects It Will Hemorrhage Billions From Its Electric Vehicle Business)
“Because the auto industry is very capital intensive and has high fixed costs that need to be spread out over thousands of units, it is not uncommon to have steep losses initially which are followed by profits,” Heritage Foundation economist E.J. Antoni told the Daily Caller News Foundation. “Imagine, for instance, needing to retool a factory and rebuild an assembly line to build different vehicles. That is much more expensive than the revenue from the first few vehicles that are produced.”
https://dailycaller.com/2023/05/03/ford-losing-tens-of-thousands-per-ev/
