Ford losing $132000 per EV Sold

9,340 Views | 119 Replies | Last: 6 mo ago by techno-ag
Bulldog73
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2:58p, 4/26/24
AG
https://www.cnn.com/2024/04/24/business/ford-earnings-ev-losses/index.html
How in the world do stockholders put up with directors who make such outstanding choices?

Some quotes:
Quote:

Ford's electric vehicle unit reported that losses soared in the first quarter to $1.3 billion, or $132,000 for each of the 10,000 vehicles it sold in the first three months of the year, helping to drag down earnings for the company overall.
Quote:
The EV unit, which Ford calls Model e, sold 10,000 vehicles in the quarter, down 20% from the number it sold a year earlier. And its revenue plunged 84% to about $100 million
Quote:
And that means this is not the end of the losses in the unit - Ford said it expects Model e will have EBIT losses of $5 billion for the full year.
Quote:
Despite the EV losses, Ford CEO Jim Farley said in a call with investors the company is making changes in its EV business, and that the company's planned next generation of EVs will allow it to be profitable on that business in the near future.
That there is a powerful business model.
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techno-ag
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In reply to Bulldog73 • 3:00p, 4/26/24
AG
Bulldog73 said:
https://www.cnn.com/2024/04/24/business/ford-earnings-ev-losses/index.html
How in the world do stockholders put up with directors who make such outstanding choices?

Some quotes:
Quote:

Ford's electric vehicle unit reported that losses soared in the first quarter to $1.3 billion, or $132,000 for each of the 10,000 vehicles it sold in the first three months of the year, helping to drag down earnings for the company overall.
Quote:
The EV unit, which Ford calls Model e, sold 10,000 vehicles in the quarter, down 20% from the number it sold a year earlier. And its revenue plunged 84% to about $100 million
Quote:
And that means this is not the end of the losses in the unit - Ford said it expects Model e will have EBIT losses of $5 billion for the full year.
Quote:
Despite the EV losses, Ford CEO Jim Farley said in a call with investors the company is making changes in its EV business, and that the company's planned next generation of EVs will allow it to be profitable on that business in the near future.
That there is a powerful business model.
"You just don't understand how this all works. These are technology companies not car companies. Prices always go down. Best selling car on the planet."

/Resident EVangelists' standard replies
Trump will fix it.
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Funky Winkerbean
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3:02p, 4/26/24
AG
How long until Joe hands out money to save the program?
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Bulldog73
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3:05p, 4/26/24
AG
Going to the Two Teas Model of economics, they should just add $132,000 to the price tag of each EV and they'll be fine, right?
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Ag87H2O
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3:20p, 4/26/24
AG
Lol at Big Auto cowering to the Democrat green agenda and then losing their a** on the initiatives.

Any CEO that bases design and production on anything other than real market factors shouldn't be CEO.
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Secolobo
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3:28p, 4/26/24
AG
And some wonder why a normal truck is to high….
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P.H. Dexippus
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In reply to Secolobo • 3:32p, 4/26/24
AG
Secolobo said:
And some wonder why a normal truck is to high….
Bingo. ICE subsidizing EV. On top of government/tax payers already massively subsidizing EV. You get to do it twice!
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Trek Strategy
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In reply to Secolobo • 3:33p, 4/26/24
Sponsor
AG
Secolobo said:
And some wonder why a normal truck is to high….
Trek Strategy - Every Journey Needs a Guide
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IndividualFreedom
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3:41p, 4/26/24
I had not thought about this being done on purpose, not to advance EV but to destroy the affordability of gas engine vehicles. You will own nothing and like it. Govt. transportation because vehicles are so expensive the avg. joe can not afford even the most basic model.
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Logos Stick
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3:43p, 4/26/24
That's why ICE engine car prices are outrageous now.
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OverSeas AG
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3:46p, 4/26/24
AG
What's that saying…. Something, something Woke, you go broke!

As i always say May lefties and Dems reap what they sow.
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Bonfire.1996
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3:46p, 4/26/24
20 years ago, this would result in a $10 Billion shareholder lawsuit that the shareholders would win in a walk.
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2023NCAggies
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In reply to Secolobo • 3:48p, 4/26/24
Secolobo said:
And some wonder why a normal truck is to high….
Pisses me off, I almost pulled the trigger on a 1500 trial boss and decided to pass on it. It was 37k at the time......

Less than 3 months later, the same truck was in the 45k range, and it has not gone down near that 37k since. What a mistake that was.

So I am driving the old dog until the wheels fall off or until prices become decent again
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2023NCAggies
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In reply to OverSeas AG • 3:50p, 4/26/24
OverSeas AG said:
What's that saying…. Something, something Woke, you go broke!

As i always say May lefties and Dems reap what they sow.
We are all going broke on this one, their stupidity raised ICE vehicle prices through the roof.

This is why I say, watch when the blue states enforce their ban, states will become redder quickly
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Tex100
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3:52p, 4/26/24
AG
Can you really put a price tag on saving the planet? Onward Ford, onward.
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bobbranco
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In reply to Bulldog73 • 3:54p, 4/26/24
AG
Bulldog73 said:
https://www.cnn.com/2024/04/24/business/ford-earnings-ev-losses/index.html
How in the world do stockholders put up with directors who make such outstanding choices?

Some quotes:
Quote:

Ford's electric vehicle unit reported that losses soared in the first quarter to $1.3 billion, or $132,000 for each of the 10,000 vehicles it sold in the first three months of the year, helping to drag down earnings for the company overall.
Quote:
The EV unit, which Ford calls Model e, sold 10,000 vehicles in the quarter, down 20% from the number it sold a year earlier. And its revenue plunged 84% to about $100 million
Quote:
And that means this is not the end of the losses in the unit - Ford said it expects Model e will have EBIT losses of $5 billion for the full year.
Quote:
Despite the EV losses, Ford CEO Jim Farley said in a call with investors the company is making changes in its EV business, and that the company's planned next generation of EVs will allow it to be profitable on that business in the near future.
That there is a powerful business model.
All should blame that virtual signaling butthole named Bill Ford.
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Fannie Luddite
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3:59p, 4/26/24
AG
The Mach-e had a 404 day supply in March. Nobody wants them.

Slowest Selling Cars - March 2024
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HollywoodBQ
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In reply to Bulldog73 • 4:00p, 4/26/24
AG
Bulldog73 said:
Going to the Two Teas Model of economics, they should just add $132,000 to the price tag of each EV and they'll be fine, right?
Imagine how much additional dealer mark-up they'll put on top of that.

You'll be out the door at $200k for an 8,000 lb pickup with a 200 mile range.
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Rex Racer
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4:02p, 4/26/24
AG
You know how you keep from losing money on the E-vehicle division? Shut. It. Down.

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Deputy Travis Junior
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In reply to Bulldog73 • 4:03p, 4/26/24
"The EV unit... sold 10,000 vehicles in the quarter, down 20% from the number it sold a year earlier. And its revenue plunged 84% to about $100 million"

How is this even possible? How does a 20% drop in sales lead to an 84% drop in revenue? Were they giving these things away?

Also, my guess is the $1.3 billion loss includes a **** ton of investment for future production that it isn't appropriate to attribute to these cars (though I'm sure their gross margins were still a disaster)
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FCBlitz
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In reply to Funky Winkerbean • 4:22p, 4/26/24
Funky Winkerbean said:
How long until Joe hands out money to save the program?


We are doing exactly that through the government. All branches of the Military branches and government agency are spending 100's of millions of dollars trying to figure out ways to spend and buy as fast as possible.

Look up EO 14057 and net zero. Then you will understand this is all in motion, it is beyond a concept or white paper. The only way to stop it is to take away a power from the Democrats.
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deddog
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In reply to Fannie Luddite • 4:46p, 4/26/24
AG
Fannie Luddite said:
The Mach-e had a 404 day supply in March. Nobody wants them.

Slowest Selling Cars - March 2024


People aren't buying an EV from a company that can't get their ICE vehicles right?
No way
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BonfireNerd04
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In reply to Fannie Luddite • 4:49p, 4/26/24
Fannie Luddite said:
The Mach-e had a 404 day supply in March. Nobody wants them.

Slowest Selling Cars - March 2024


One of my co-workers just bought one.
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tk for tu juan
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4:54p, 4/26/24
Q1 2024 Earnings Slides
Fleet sales (Ford Pro) had a revenue increase of 36% and a EBIT of $3.0B. Fleet sales will be carrying Ford for the rest of the year. Their 2024 EBIT outlook for the EV division (Ford Model e) is shown as a $5B to $5.5B loss. So guess we will see this same thread for the next three quarters

https://shareholder.ford.com/Investors/Home/default.aspx
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harleyds2
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In reply to Tex100 • 4:57p, 4/26/24
AG
Obviously knows nothing or doesn't care how all the metals are mined and all child labor supporting it
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bobbranco
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In reply to tk for tu juan • 5:00p, 4/26/24
AG
Ford is relying on brand loyalty. I was loyal until Bill Ford went overboard on the BEV nonsense and jacked up the prices for every vehicle.
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deddog
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In reply to BonfireNerd04 • 5:04p, 4/26/24
AG
BonfireNerd04 said:
Fannie Luddite said:
The Mach-e had a 404 day supply in March. Nobody wants them.

Slowest Selling Cars - March 2024


One of my co-workers just bought one.


Hopefully he's not in charge of any major decision making
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deddog
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In reply to bobbranco • 5:06p, 4/26/24
AG
bobbranco said:
Ford is relying on brand loyalty. I was loyal until Bill Ford went overboard on the BEV nonsense and jacked up the prices for every vehicle.

Loved my Mustang. Wanted to buy "American"
Bought an Edge (awful)
Bought an Explorer ( powerful but problems in year 3 that should happen in Year 7-10)

Done with Ford.
Unless maybe Mustang GT
And as much as I love mustangs, still not buying the Mach E
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Ryan the Temp
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In reply to Trek Strategy • 5:08p, 4/26/24
AG
Trek Strategy said:
Secolobo said:
And some wonder why a normal truck is to high….
I would argue a big reason these two lines are divergent is the requirements that have been added to vehicles over time, particularly the technology requirements like backup cameras, etc. I read somewhere a while back that 40% of the price of a new car is the electronics. I would be interested in seeing what a base model would cost, excluding the costs of any technology requirements that have been introduced since the beginning of the chart's timespan.
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nortex97
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In reply to Bulldog73 • 5:33p, 4/26/24
AG
Bulldog73 said:
Going to the Two Teas Model of economics, they should just add $132,000 to the price tag of each EV and they'll be fine, right?
They'll make up for it on the volume.
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AgLiving06
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5:39p, 4/26/24
I own two fords right now. After the nonsense they pulled during COVID with raising prices and manufacturing a supply issue I can't see myself buying another.
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TexAgs91
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In reply to Funky Winkerbean • 5:55p, 4/26/24
AG
Funky Winkerbean said:
How long until Joe hands out money to save the program?
He can't afford it
"Freedom is never more than one election away from extinction"
Fight! Fight! Fight!
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AggieMD95
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6:17p, 4/26/24
AG
Loved th Lincoln navigators I've had but price shot up when we were ready for another one.

Bought a use Land Cruiser instead

Plan to hold onto my v8 6.2L raptor svt for as long as I can
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YouBet
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In reply to deddog • 6:21p, 4/26/24
AG
deddog said:
bobbranco said:
Ford is relying on brand loyalty. I was loyal until Bill Ford went overboard on the BEV nonsense and jacked up the prices for every vehicle.

Loved my Mustang. Wanted to buy "American"
Bought an Edge (awful)
Bought an Explorer ( powerful but problems in year 3 that should happen in Year 7-10)

Done with Ford.
Unless maybe Mustang GT
And as much as I love mustangs, still not buying the Mach E


Well, the Mach E is literally not a Mustang so I get your decision.

That $132K per vehicle loss is pretty incredible. I bet Ford is going to follow the Stellantis model. Stellantis has developed a common platform that they can use for both ICE and EV. It's a smart business decision that probably sanitizes consumer choice. They are going to build everything from cars to trucks both ICE and EV all on the same platform. This will be the future I suspect.
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nortex97
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In reply to YouBet • 7:03p, 4/26/24
AG
Before the EV insanity the mfg's had all been consolidating around 3 or 4 basic platforms each (A, B, C size, then trucks). I dunno if that works out well though as EV's have such different basic platform requirements to be 'ideal.'

I am skeptical Stellantis really has a platform that works 'great' for both, as they have a history of failing in both EV's and ICE vehicles. Heck, they are even today selling some distant descendent of some 1990's E-class Mercedes as a Dodge sedan/muscle car.

What would be really fascinating is if Tesla decided to commit some heresy vs. the evangelists and built a hybrid model at scale. I doubt it though, too many ego's at risk.
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