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.
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