Ford Motor Company projects it will lose a staggering $4.5 billion on electric vehicles (EVs) in 2023, up from its previously predicted loss of $3 billion earlier this year.
Ford, which has recently reduced the price of its electric F-150 Lightning pickup truck, announced Thursday that the company is projected to lose $4.5 billion from EVs this year, according to a report by Fortune.
James Farley, president and chief executive officer of Ford Motor Co., speaks during a launch event for the 2022 Ford F-150 Lightning all-electric truck at the Rouge Electric Vehicle Center in Dearborn, Michigan, U.S., on Tuesday, April 26, 2022. Photographer: Emily Elconin/Bloomberg
DEARBORN, MI – APRIL 26: Ford F-150 Lightning pickup trucks are shown in production at the Rouge Electric Vehicle Center on April 26, 2022 in Dearborn, Michigan. (Photo by Bill Pugliano/Getty Images)
The company’s EV division, called “Ford Model e,” has already lost about $1.8 billion so far this year. The projected loss of $4.5 billion reportedly stems from slower-than-expected adoption of the new battery-powered vehicles.
The automaker is also pushing out its production targets, and expects to hit an annual production rate of 600,000 units a year by next year. Ford had initially hoped to reach that target by the end of this year.
Breitbart News has reported extensively on Ford’s troubles with its electric trucks, which perform especially poorly when towing.
“I had this thing charged to just over 200 miles when I started my day, so ample margin for error when it comes to range and towing and also considering the fact that the trailer was going up empty two times,” Hoover added.
After attaching the empty aluminum trailer to his truck and “pulling out my neighborhood,” which was just about a quarter of a mile away, the EV had already lost three miles of range. By the time Hoover got to his location 32 miles away, the vehicle had lost a staggering 68 miles of range.
Once he loaded up the Model A truck and drove it back to his neighborhood, Hoover “got the driving range low warning,” and saw that he only had 50 miles of range left, despite charging the EV for 200 miles at the start of his 64-mile round trip.
Despite its loss on electric vehicles, Ford has reported a large jump in net income due to positive results involving its traditional and commercial vehicles.
For its second-quarter revenue, Ford reportedly generated $45 billion — a 12 percent increase year-on-year — and has earned $1.9 billion in quarterly net income, which is almost triple what it raked in this time last year.
The company also reported strong growth in its commercial vehicle segment, called “Ford Pro.” The revenue for that segment reportedly grew by 22 percent to hit $15.6 billion.
Ford has also increased its guidance on earnings before interest and taxes (EBIT) to between $11 billion and $12 billion, and is predicting $16 billion in EBIT from its traditional and commercial vehicle segments combined, Fortune reported.
As Breitbart News reported last month, President Joe Biden’s administration is loaning Ford and its battery manufacturing partner billions of dollars to help build three EV battery plants.
Meanwhile, more than 90,000 electric cars and trucks are sitting on dealer lots, which is four times as much as there were a year ago, according to a report by the New York Times citing data from the market research firm Cox Automotive.
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