Ford is expecting to lose $3 billion pretax on its electric vehicle (EV) division this year, according to statements from the company made on Thursday (via Reuters).
The projected loss was shared during a mid-morning briefing on Thursday, with investors and analysts looking at Ford’s financial results from a new way of reporting them. Despite the losses, the automaker says it’s still on track to reach a pretax margin of 8 percent by late 2026.
Ford plans to announce its Q1 results on May 2, sharing details on its three business units: Model e (EV division), Blue, (combustion engine division) and Pro (commercial vehicles and service division).
Regional financial results will no longer be discussed, and instead, the company will report them by business unit, according to CFO John Lawler.
“That’s how we’re running the company now,” Lawler said.
Lawler also added that Ford plans to detail quarterly and annual sales, as well as market share, for its top five global markets, though not by specific region.
Ford’s 2022 pretax losses amounted to $600 million in China, while the automaker broke even in Europe, posted $400 million in profits in South America, and posted $9.2 billion in earnings before interest and taxes in North America.
Ford also expects to have a global capacity of 600,000 EVs by 2023, with 2 million units expected by late 2026.
“And we intend to fully use that capacity,” Lawler added, speaking of delivery forecasts.
While Ford struggles to make a profit on EVs, Tesla remains to make the most profits per vehicle, even beating traditional automakers.
Check out Ford’s CFO John Lawler asked straight up, when will the company make money on EVs?
$F lost $2.1 billion on EVs in 2022, and expects to lose $3 billion this year.
"When are you going to make money on EVs?" @Lebeaucarnews asks @Ford CFO John Lawler: pic.twitter.com/osLo7UnYWr
— Squawk Box (@SquawkCNBC) March 23, 2023
