Ford's electric car division, called Model e, reported an 84% drop in revenue to nearly $100 million in the first quarter. The automaker attributed most of its profit to lower prices for electric cars.
The Model e division reported a loss before interest and taxes (EBIT) of $1.3 billion. Ford Model e sold roughly 10,000 units, meaning it lost $132,000 on every electric car sold.
Ford, like many other electric car manufacturers, is experiencing a market slowdown. Despite this fact, Ford and Tesla are doubling the number of units produced.
“As we've all seen, the pace of EV adoption worldwide is under pressure and many other OEMs are moving away from EVs and into plug-in hybrids instead. We believe this is the wrong strategy and EVs will eventually dominate the market.”Tesla CEO Elon Musk said during the Q1 2024 earnings call.
During Ford's Q1 2024 earnings call, CEO Jim Farley confirmed that the company is developing new affordable electric vehicles. Ford is rumored to be working on an affordable electric truck and compact SUV.
Affordability has been the buzzword on automakers' lips lately, especially when it comes to electric vehicles. Ford plans to take its place in this segment. The automaker wants to release a new electric car by the end of 2026. Based on the released details, it will likely cost $25,000.
“Increasingly, we'll be betting on our new small, affordable platform developed by our team on the West Coast,” – Farley said. “The more affordable we can make the new product, the more attractive it will be to these core EV consumers.”