Ford’s Model e division loses $722 million, but still posts overall earnings beat in Q1 2023

Ford reported its Q1 2023 financials this afternoon and for the first time broke up their report for their three new divisions, including their electric Model e division. While the overall financials were positive and exceeded analyst expectations, the results weren’t pretty for their Model e division as it continues to bleed money as the Detroit-based automaker ramps production.

In the first three months of 2023 Ford’s Model e division brought in $700 million in revenue for a net loss of $722 million, more than twice the losses from Q1 2022 of $342 million. The automaker likened the division to a startup and attributing the high losses to “developing innovative electric vehicles along with breakthrough digital capabilities for deployment across the company’s entire product line.”

The Model e financials were also impacted by production interruptions for two of their three fully electric vehicles. Production of the Mustang Mach-E was hindered by line upgrades that will nearly double the manufacturing capacity, while the F-150 Lightning also saw a production shutdown due to a battery issue.

As we have previously reported, Ford expects its Model e division to continue to lose cash for the foreseeable future, and anticipates a $3 billion loss in 2023.

When looking at the Ford’s financial report overall, the automaker exceeded Wall Street’s anticipated revenue of $36 billion by reporting revenue of $41.5 billion. That is a 20% increase from the same period last year, with the majority of that naturally attributed to the sales of commercial and gas-powered vehicles. Ford Blue, which includes gas and hybrid vehicles, brought in revenue of $25.1 billion, while Ford Pro, its commercial division, reported $13.2 billion, a 28% increase from last year.

The net income amounted to $1.8 billion, a big shift from the net loss of $3.1 billion from the previous year. The adjusted earnings before interest and taxes (EBIT) reached $3.4 billion, a 45% increase.

Ford reiterated its full-year 2023 guidance, which was initially disclosed in early February. The guidance includes adjusted earnings before interest and taxes (EBIT) ranging from $9 billion to $11 billion and adjusted free cash flow of approximately $6 billion.

Ford reopening Mustang Mach-E orders with more range, improved features, and lower prices [Update]

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