Ford has seen a surge in electric vehicle (EV) sales in the first quarter of 2024, but the transition to electric continues to pose serious financial hurdles for the automaker.
In the first quarter of 2024, Ford reported an impressive 86% increase in EV sales, with a total of 20,233 EVs sold in the first three months of the year. This surge was enough to place Ford as the second best-selling EV brand behind Tesla, with sales led by the Mustang Mach-E , with Q1 sales of 9,589, a 77% increase in sales compared to the same period last year.
The F-150 Lightning maintained its status as America’s best-selling electric truck, with sales of 7,743 units, up 80%.
Sales of the E-Transit commercial van also saw a substantial increase, up by 148% in Q1, enough to make it its best quarter ever with 2,891 units sold.
However, this success comes amidst financial hurdles. Ford’s EV operations, referred to as the Model e division, faces substantial losses amounting to $1.3 billion in the first quarter alone. This figure translates to a $64,000 loss per EV sold.
The Detroit-based automaker attributes these losses partly to aggressive pricing strategies and the ongoing price war in the EV sector, which has significantly impacted profitability across the industry.
Ford’s approach to these challenges includes a strategic revision of its production and launch plans. The company has decided to delay the introduction of new EV models and focus on enhancing the profitability of its existing lineup. This includes pushing back production at its BlueOval City facility and delaying the launch of a three-row electric SUV.
