Ford still loses billions of EV but not all are lost

Ford continues loses a lot of money of electric vehicles such as the F-50 Lightning and Mustang Mach-E. New rates for Mexico and China – which may or may not come into force – as well as eliminating former President Biden’s EV incentives, is unlikely to help. The silver lining is that Ford still prints money on its gas cars, so overall the company remains profitable and can use that money to nourish its prolonged rotation of electrification, where it seems fortunately remains engaged.

For the whole year 2024, Ford reported a net income of $ 5.9 billion with a corrected profit of $ 10.2 billion. However, his electric vehicle business lost $ 5.1 billion, even more than a loss of $ 4.7 billion in the previous year. He expects to lose even more, $ 5.5 billion, on EVS in 2025.

The transition to a whole new type of car platform requires a lot of advance research and development, a supply chain and marketing costs. Automobile manufacturers must comply with the main scale savings. Ford has to sell many electric cars to recover its investment and start making money for every vehicle, but cars must be available to people to buy them actually. In the United States, the only manufacturer of electric vehicles that actually started seeing the profits of any vehicle is Tesla and this company began with the sale of luxury cars to wealthy technological executives, even still living in the gap of bankruptcy for years. The losses have been quite guaranteed for years.

In the past, there were fears that car manufacturers like Ford and General Motors only pay lips to electrification. During President Trump’s first administration, for example, GM supported his plan to eliminate elevated emission standards in California. Gas business business has long been very profitable, so hereditary car manufacturers have not stimulated to go electric. This is the whole The dilemma of the innovator Edition. Whatever you want to say about Tesla Elon Musk CEO, he helped to force this transition.

GM is in a very different place in 2025, but with a wide range of electric vehicles that are now on the market that are well-viewed, such as Silverado EV. The executive director of the carmaker Mary Bar said his business would become a winner this year. Despite the growth delay, EVS has reached a turning point where they are inevitable. Most people who drove an electric car admit that they are just much more enchanting and pleasant, but companies like Rivian have failed to reduce high prices. This company promises R2 will be more accessible with a Starting price around $ 45,000-Put too high for most, but better than your existing composition.

Like how gas cars have been supported for decades of investment, including President Eisenhower’s investment on an interstate highway network, it takes some time to build EV infrastructure. Charging remains a problem, but it continues to improve.

Ford responded with its most ambitious EV commitments recently, as investors demanded the company to improve its financial results and sales growth in EVS. He canceled the three-row electric SUV and its F-150 lightning became a little old in the tooth. Pickup sales fell 15.5% to just 1.907 last month, compared to 2258 in January 2024. However Elecrektrek172% of 1.295 units sold last month. The carmaker hopes that a new platform he is developing will allow him to release EV, which is more accessible to the average buyer. Ford also releases more hybrid-electric vehicles and electric vehicles with small gas generators that can charge the battery and extend their range, offering up to 700 miles when charging. This is something that is the auxiliary scout of Volkswagen Doing in the United States After earlier, he committed to making pickups that were completely electric.

Musk supports President Trump’s plans to end EV incentives. Critics believe this is partly because Tesla is already profitable on a CAR basis, so it does not need tax incentives as much as traditional car manufacturers perhaps. He has long said that he was interested in doing everything that is best for the movement of electrification as a whole, even if he harms his own company, but few already believe in it. Recent sales data from California and Germany suggest that its policy is injuring Tesla sales, which returns the EV transition. Musk’s support for President Trump has made him deeply unpopular in California, the largest market for US cars in the United States, and in Germany recently supported the final alternative to Germany (AFD), which rejected the Nazi past.

Everything is sad because the electric manufacturers of Chinese are working circles around the United Statesentering Europe and markets such as Brazil and Mexico with both affordable and affordable and with Premium electric cars This threatens the dominance of US car manufacturers. China was making money in the electric vehicle sector to try to make its country more influential around the world and seems to be working. Meanwhile, President Trump and Musk are more focused on generative AIs these days, so Americans will probably have to adopt EV’s more slow transition over the next few years and a potential reduction in automotive influence in the United States.