SUMMARY
- Steep $4.5 billion projected EV losses, overshadowing last year's $2.1 billion.
- Prices for electric F-150 Lightning truck set to drop with cheaper battery materials.
- Ford Model e witnesses a robust 39% revenue surge; 600,000 annual EV production aimed for 2024.
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Ford Motor Company recently dropped a bombshell: their anticipated losses from electric vehicles (EVs) for the year have skyrocketed to $4.5 billion, a steep climb from the formerly projected $3 billion. Revealed in their second-quarter financial results, Ford's specialized EV division, aptly named "Ford Model e," has already seen a loss of $1.8 billion just halfway into the year.
This looming $4.5 billion loss dwarfs the previous year's loss of $2.1 billion for Model e. But it's not all bleak news. Ford has also shared that the cost of their popular electric F-150 Lightning pickup truck is dropping, thanks to more affordable raw battery materials.
Flexing their innovative muscles, Ford proudly declared that their competitive EV pricing positions them as frontrunners for the upcoming wave of next-gen EVs. They're seeing a promising 39% revenue surge for the Ford Model e. Plus, by 2024, they're gearing up to produce a staggering 600,000 EVs annually.
CEO Farley remained optimistic, highlighting that the initial adoption of EVs may be gradual, benefiting early birds like Ford. He emphasized the brand loyalty among EV users, the smart global investments Ford is making, and teased jaw-dropping next-gen products already in the works.
While the EV division faces challenges, Ford as a whole is thriving. Their recent second-quarter boasted a revenue of $45 billion, paired with a net income of $1.9 billion. As CFO John Lawler aptly noted earlier this year, "Ford Model e is an EV startup within Ford," and like most startups, initial investments are often met with losses before eventual gains.
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