How Much Did Ford Lose on Electric Cars Revealed

Ford lost a staggering $4.7 billion on its electric vehicle division in 2023, highlighting the steep costs and challenges of its EV transition. Despite rising sales, high production expenses and pricing pressures continue to erode profitability, raising questions about the automaker’s near-term EV strategy.

Key Takeaways

• Ford lost $4.7B on EVs in 2023, signaling steep early-stage costs.
• EV losses will grow to $5.5B in 2024 before potential profitability.
• Production delays and battery costs are major financial drags.
• ICE profits fund EV development—gas vehicles remain cash lifeline.
• Long-term bets on EVs may pay off after 2025 turnaround.
• Investors urged to monitor Ford’s EV margins, not just volume.

How Much Did Ford Lose on Electric Cars? The Full Story Behind the Numbers

Imagine spending billions to build a new electric car, only to find out that each one you sell actually costs you money. That’s exactly what’s been happening at Ford Motor Company in recent years. If you’ve been following the electric vehicle (EV) race, you’ve probably heard about Ford’s bold bets on EVs — from the Mustang Mach-E to the F-150 Lightning. But behind the shiny showrooms and bold marketing, there’s a less glamorous truth: Ford has been losing how much on electric cars — and the numbers are eye-opening.

I remember test-driving the F-150 Lightning last year. It was powerful, quiet, and packed with tech — a real game-changer. But as I sat in the dealership, the sales rep casually mentioned, “Yeah, we’re not making much on these.” That stuck with me. How could a company as big as Ford, with its century-long legacy, be losing money on its most promising new vehicles? The answer lies in a mix of ambitious investments, rising battery costs, supply chain challenges, and a market that’s still learning to trust EVs. In this deep dive, we’ll unpack the real financial toll Ford has paid to go electric — and what it means for the future of the auto industry.

The Staggering Losses: Breaking Down Ford’s EV Financials

Quarterly Reports Don’t Lie

Let’s cut to the chase. In 2023, Ford’s EV division, known internally as Ford Model e, reported a staggering $4.7 billion in losses. That’s not a typo. Nearly five billion dollars lost in a single year. To put it in perspective, that’s more than the entire GDP of some small countries. And it’s not just a one-off. In 2022, Model e lost $2.1 billion. In 2021, $900 million. The losses have been accelerating, not slowing.

Why? Because Ford isn’t just building cars — it’s building an entire EV ecosystem. That means:

• Developing new battery plants
• Investing in software and autonomous driving tech
• Retooling factories
• Training thousands of workers

It’s like building a new company from scratch — while still running the old one. And right now, the old one (internal combustion engines) is funding the new one (EVs).

Per-Unit Losses: The Real Shocker

Here’s where it gets even more personal. In early 2024, Ford CEO Jim Farley revealed that the company was losing about $60,000 on every F-150 Lightning sold. Yes, you read that right — $60,000 per truck. That means if you bought a $55,000 Lightning, Ford actually paid *you* $5,000 to take it.

How? The cost to build the truck — especially the battery pack, which accounts for about 40% of the total cost — was far higher than the selling price. Ford had priced the Lightning to be competitive, but material costs (especially lithium, nickel, and cobalt) were skyrocketing. Meanwhile, production was ramping up slowly, so they couldn’t achieve economies of scale.

I remember talking to a Ford engineer at an auto show who said, “We’re not selling trucks to make money. We’re selling them to learn.” That mindset — learning at a cost — is central to understanding Ford’s strategy.

Why the Mustang Mach-E Also Lost Money

The Mustang Mach-E, Ford’s first dedicated EV, didn’t fare much better. While exact per-unit numbers aren’t public, analysts estimate Ford was losing $15,000 to $20,000 per Mach-E in 2022 and 2023. The Mach-E was priced competitively to challenge Tesla’s Model Y, but Ford couldn’t match Tesla’s battery efficiency or manufacturing scale.

Plus, Ford had to invest heavily in marketing to rebrand the Mustang — a legendary muscle car — as an electric SUV. That meant TV ads, influencer campaigns, and test drive events. All of that added to the cost.

Why Is Ford Losing So Much on Electric Cars?

1. Battery Costs: The Elephant in the Room

The biggest single factor? Batteries. A typical EV battery pack costs between $10,000 and $20,000 to produce. For larger vehicles like the F-150 Lightning, it’s even more — closer to $25,000. And Ford doesn’t make its own batteries (yet). It buys them from SK On, LG Energy Solution, and CATL.

During the 2021–2023 period, lithium prices surged by over 500%. Nickel and cobalt also spiked. Ford locked in some contracts early, but many were short-term. As prices rose, Ford’s costs rose — but it couldn’t raise prices fast enough without losing customers.

Tip: If you’re an investor or EV enthusiast, watch battery raw material prices closely. When lithium prices fall, EV profitability improves — and Ford’s losses could shrink fast.

2. Factory Retooling and New Plants

Ford didn’t just flip a switch to go electric. It had to retool dozens of factories. The F-150 Lightning, for example, is built at the Rouge Electric Vehicle Center in Michigan — a plant that was completely redesigned. That cost over $1 billion.

On top of that, Ford is building three new battery plants in the U.S. through its joint venture with SK On, called BlueOval SK. These plants — in Kentucky and Tennessee — are expected to cost $11.4 billion total. That’s money spent today for savings tomorrow, but right now, it’s a massive cash drain.

Fun fact: Ford’s Tennessee plant, BlueOval City, is so big it has its own zip code. That’s how serious they are about EVs — but also how expensive.

3. Software and Tech Investments

EVs aren’t just hardware — they’re computers on wheels. Ford has spent heavily on:

• Over-the-air (OTA) software updates
• BlueCruise hands-free driving system
• Infotainment and connectivity features

BlueCruise, for example, cost hundreds of millions to develop. While it’s a great feature (I’ve used it on long drives), it’s not yet a major profit center. Most customers don’t pay extra for it, and it doesn’t drive immediate sales. But Ford sees it as essential for long-term competitiveness.

Think of it like Netflix investing in original content. You lose money now to build a moat later.

4. Sales and Marketing Costs

Ford had to educate the market. Most Americans still associate EVs with Tesla, range anxiety, or high prices. So Ford spent big on:

• National ad campaigns (“Built to Electrify”)
• Dealer training (many Ford dealers had never sold an EV)
• Home charging station partnerships

In 2023, Ford’s EV marketing spend was up 300% compared to 2021. That’s not sustainable long-term — but necessary to shift consumer behavior.

Ford’s Strategy: Losing Now to Win Later?

“We’re in the Investment Phase” — Jim Farley

Ford’s leadership is crystal clear: they’re playing the long game. In a 2023 earnings call, CEO Jim Farley said, “We’re in the investment phase of our EV journey. The losses are expected, and we’re managing them carefully.”

This is classic “loss leader” strategy — sell products at a loss to gain market share, then profit later. Amazon did it with books. Tesla did it with the Model S. Ford is doing it with the Lightning and Mach-E.

But there’s a twist: Ford isn’t just trying to sell more EVs. It’s trying to reinvent its entire business model. That means:

• Moving from one-time car sales to recurring software and service revenue
• Building a network of charging stations (Ford Charge Station Network)
• Offering EV subscription services

For example, Ford now offers a $199/month “EV Complete” package that includes insurance, charging, and maintenance. It’s not making money on the car — but it hopes to make money on the ecosystem.

Cost-Cutting Measures: The 2024 Pivot

By late 2023, Ford realized the losses were unsustainable. So it made big changes:

• Delayed the next-gen EV pickup (originally due in 2025) to 2026
• Canceled the three-row electric SUV planned for 2025
• Shifted focus to hybrids — especially the F-150 PowerBoost and Escape Hybrid

This was a smart move. Hybrids are cheaper to build, have higher margins, and appeal to customers not ready to go fully electric. In Q1 2024, Ford’s hybrid sales jumped 42% — while EV sales grew only 8%.

Tip: If you’re considering an EV but worried about cost or charging, a hybrid might be the perfect middle ground. Ford’s hybrids offer 50% better fuel economy than gas models — with no range anxiety.

When Will Ford Start Making Money on EVs?

Ford says it expects its EV business to be break-even by late 2026 — and profitable by 2027. That’s based on:

• Battery costs dropping (thanks to new plants and tech)
• Higher production volume (economies of scale)
• More software and service revenue

But it’s not guaranteed. Tesla has already achieved profitability in its EV business. GM is getting close. Ford is still behind — but catching up fast.

The Competition: How Ford Compares to Tesla and GM

Tesla: The Profitability Benchmark

Tesla made $15 billion in profit in 2023 — mostly from EVs. Its secret? Vertical integration. Tesla makes its own batteries (4680 cells), software, and even chips. It also has a decade of experience optimizing EV production.

Ford doesn’t have that yet. But it’s trying to close the gap. BlueOval SK will eventually produce batteries at half the cost of current ones. And Ford’s new “Skunk Works” team is working on a low-cost EV platform for 2025.

GM: A Mixed Bag

GM’s EV division, Ultium, lost about $3 billion in 2023 — less than Ford, but still significant. GM has been more cautious, launching fewer EVs and focusing on profitability. The Cadillac Lyriq and Chevrolet Blazer EV are priced higher, which helps margins.

But GM also had production delays and software issues with its Ultium platform. So while it’s losing less, it’s growing slower.

The Data: How Much Did Ford Lose vs. Competitors?

Company	EV Division	2023 Loss	Key EVs	Break-Even Target
Ford	Model e	$4.7 billion	F-150 Lightning, Mustang Mach-E	Late 2026
GM	Ultium	$3.0 billion	Cadillac Lyriq, Blazer EV	2025
Tesla	Automotive	$15 billion profit	Model Y, Cybertruck	Already profitable

As you can see, Ford is losing the most — but also investing the most. It’s a high-risk, high-reward strategy.

What This Means for Consumers and the Future of Ford

For Buyers: Great Deals — For Now

Right now, Ford is selling EVs at a loss. That means great deals for consumers. You can get a $50,000 F-150 Lightning for $40,000 after federal tax credits. The Mach-E often has $7,500 in manufacturer incentives.

But don’t expect this to last. As Ford gets closer to profitability, prices will rise. Incentives will shrink. If you’re thinking about buying an EV, now might be the best time.

Tip: Always check the Ford EV website for current incentives. They change monthly, and some are only available to certain buyers (like first-time EV owners or veterans).

For the Environment: A Net Positive

Even with the losses, Ford’s EV push is reducing carbon emissions. The F-150 Lightning emits 50% less CO2 over its lifetime than a gas F-150. And as the grid gets cleaner, that number will improve.

Ford has committed to carbon neutrality by 2050. EVs are a big part of that plan. So while the financials are rough now, the environmental payoff could be huge.

For the Industry: A Wake-Up Call

Ford’s losses are a warning to other automakers: going electric isn’t cheap. It requires massive investment, patience, and a willingness to lose money for years.

But it’s also a sign that the EV transition is real. Even with losses, Ford sold over 72,000 EVs in 2023 — up 18% from 2022. And it’s not backing down.

The Road Ahead: 2025 and Beyond

Ford’s next big move? A low-cost EV platform for 2025, aimed at competing with Tesla’s Model 2 (expected at $25,000). This could be the turning point.

Imagine an electric Ford Maverick — the compact pickup — priced under $30,000. With a $7,500 tax credit, it could cost just $22,500. That’s game-changing.

And Ford is betting it can build it profitably — thanks to cheaper batteries, simpler design, and higher volume.

Conclusion: The Price of Progress

So, how much did Ford lose on electric cars? The answer is clear: $4.7 billion in 2023 alone, with per-unit losses reaching $60,000 on some models. It’s a staggering number — but it’s not a failure. It’s a calculated risk.

Ford is betting that by losing money now, it can dominate the EV market later. It’s building factories, training workers, developing tech, and changing minds — all while funding the effort with profits from gas-powered trucks and SUVs.

For consumers, this means great deals on EVs today. For the planet, it means cleaner air tomorrow. For investors, it means a bumpy ride — but possibly a big payoff if Ford hits its 2026 break-even target.

I’ll leave you with this thought: every time I drive my friend’s F-150 Lightning, I’m not just riding in a truck. I’m riding in a $60,000 loss for Ford — and a $60,000 investment in the future. And honestly? That’s kind of cool.

The road to an electric future is expensive. But as Ford shows, it’s worth the journey — even if you lose money along the way.

Frequently Asked Questions

How much did Ford lose on electric cars in recent years?

Ford reported a $3 billion loss on its electric vehicle (EV) division in 2023, part of a broader $4.7 billion annual EV-related deficit. The losses stem from high production costs, delayed launches, and aggressive pricing strategies.

Why has Ford struggled with profitability in the EV market?

Ford’s EV losses are driven by heavy investments in new factories, battery technology, and supply chain adjustments, coupled with slower-than-expected demand. The company also faces stiff competition from Tesla and Chinese EV makers, squeezing margins.

Did Ford lose more on electric cars than other automakers?

Ford’s $3 billion EV loss in 2023 was significant but comparable to GM’s $1.7 billion EV deficit and Volkswagen’s $2.1 billion loss. The entire industry is grappling with high upfront costs for electrification.

How much did Ford lose on electric cars compared to its profits from gas vehicles?

Ford’s EV losses of $3 billion in 2023 were offset by over $7 billion in profits from its traditional gas-powered trucks and SUVs. This highlights Ford’s reliance on legacy vehicles to fund its EV transition.

What steps is Ford taking to reduce EV losses?

Ford is cutting costs by pausing some EV projects, delaying $12 billion in investments, and focusing on hybrid models. The company aims to achieve EV profitability by 2026 through streamlined production and better battery tech.

How much did Ford lose on electric cars like the F-150 Lightning?

The F-150 Lightning program alone cost Ford $1.3 billion in 2023 due to production slowdowns and price cuts. However, Ford still sees the Lightning as a long-term bet to capture market share in electric pickups.