[Auto] Ford Says It Will Lose Billions on Electric Cars in 2025

[- !el Catire *O*]

Electric vehicles are still generally unprofitable due to the high costs associated with making batteries, which remain the priciest component of an EV. Tesla's first profitable year was not until 2020. Last month, General Motors said it's finally starting to make some money with electric cars. Ford's Model e division, responsible for zero-emission vehicles, had a difficult 2024 and is bracing for another tough year.

While detailing its financial results for 2024, the Blue Oval admitted it incurred a full-year EBIT (earnings before interest and taxes) loss of $5.1 billion. Things could be even worse this year, as the Dearborn automaker predicts Model e will report a loss of $5 billion to $5.5 billion. As bad as this sounds, Ford remains optimistic since some money goes into EV investments. In addition, it reported $1.4 billion in "cost improvements" last year for the Model E branch.

Although Model e is hemorrhaging money, Ford sold 34.8 percent more EVs last year in America, where shipments grew to 97,865 units. Hybrids were also up by 40.1 percent to 187,426 vehicles. However, the gas-fueled vehicles did all the heavy lifting, reaching 1,793,541 units, or +0.2 percent vs 2023.
Last year marked the 47th consecutive year that the F-Series was the best-selling truck in the United States, but Ford's boss concedes large EVs have "unresolvable" issues. During this week's 2024 financial conference call, CEO Jim Farley said electric vehicles are not a "good technology" for towing since their batteries are "too big."

But it's not just that. Farley said big EVs suffer from worse aerodynamics and are heavier than their gasoline counterparts, so a large and expensive battery is needed to deliver a decent range. Ford is taking its time with the next wave of electric vehicles, delaying the new midsize pickup to the end of 2027, or about 18 months later than initially expected.

Link:https://www.motor1.com/news/749914/ford-predicts-lose-billions-electric-cars/