Ford Model e Loses $1.1 Billion in Q3 Despite Improved Profitability

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Ford has reported another billion-dollar quarterly loss for its electric vehicle division, as falling EV sales and lower production volumes continued to weigh on its financial performance.

According to Ford’s third-quarter 2026 earnings report released on Wednesday, its Model e division posted an EBIT loss of US$1.1 billion (C$1.5 billion), an improvement of 25% compared to the same period last year.

The division recorded revenue of US$1.2 billion (C$1.7 billion), down 31% from US$1.8 billion a year earlier. Wholesale deliveries also fell 31%, dropping from 50,000 to 34,000 vehicles.

Despite the smaller overall loss, Model e’s EBIT margin worsened to negative 86.5%, compared to negative 79.1% in the third quarter of 2025.

In its earnings presentation, Ford said: “Volume and revenue down, driven by discontinuation of F-150 Lightning and right-sizing of Mustang Mach-E production to customer demand.”

The company said it has been working to reduce losses on its first-generation electric vehicles, while continuing to invest in its next generation of more affordable EVs and its Ford Energy business.

Those efforts helped reduce Model e’s quarterly loss by US$352 million compared to last year, although higher investment costs continued to offset some of those improvements.

For the first nine months of 2026, Model e generated US$3.5 billion (C$4.9 billion) in revenue, down 35%, while recording an EBIT loss of US$2.75 billion (C$3.9 billion).

Meanwhile, Ford’s overall business remained profitable. The automaker reported third-quarter revenue of US$49.5 billion (C$69.5 billion), net income of US$2.0 billion (C$2.8 billion), and adjusted EBIT of US$2.7 billion (C$3.8 billion).

Ford also raised its full-year adjusted earnings guidance to between US$10.5 billion (C$14.7 billion) and US$11 billion (C$15.4 billion), up from its previous forecast.

However, the company left its full-year Model e loss forecast unchanged at approximately US$4.0 billion (C$5.6 billion).

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