How Much Is Ford Losing on Electric Cars Revealed

Ford is losing approximately $4.7 billion annually on its electric vehicle (EV) division, as the automaker ramps up investments in battery plants, technology, and scaling production. Despite rising EV sales, high costs and pricing pressures continue to erode profitability, delaying Ford’s goal of achieving positive margins in its electric car segment until at least 2025.

Key Takeaways

• Ford lost $4.7B on EVs in 2023, signaling steep early-stage costs.
• Scale is critical: Higher production may reduce per-unit losses over time.
• Pricing pressure mounts: Aggressive MSRPs are cutting into already thin margins.
• Battery costs remain the biggest hurdle to EV profitability for Ford.
• Software and services could be key to offsetting hardware losses.
• 2025 targets delayed: Ford pushes back profitability timeline by 12–18 months.

How Much Is Ford Losing on Electric Cars Revealed

Imagine you’re at a family barbecue, and your cousin—let’s call him Mike—leans over with a smirk and says, “Ford’s losing a ton of money on those fancy electric cars, right?” You nod, because it’s hard to ignore the headlines: Ford’s EV division hemorrhaging cash, price cuts, and delayed production. But how much exactly is Ford losing on electric cars? Is it just a bump in the road or a sign of deeper trouble? Let’s pull back the curtain and dive into the numbers, the strategy, and what it means for you—whether you’re a Ford fan, an EV shopper, or just curious about the future of cars.

The truth? Ford’s electric vehicle (EV) business is burning through cash faster than a Tesla on a racetrack. But this isn’t just a story of losses. It’s a tale of ambition, market shifts, and a legacy automaker trying to reinvent itself. We’ll break down the exact figures, the reasons behind the losses, and how Ford plans to turn things around. Spoiler: It’s not all doom and gloom. There’s a method to the madness—and a roadmap to profitability. So grab a coffee, settle in, and let’s explore how much Ford is losing on electric cars and what it means for the road ahead.

1. The Stark Numbers: Ford’s EV Losses in Black and White

The Headline Figures: $1.3 Billion in Q1 2024

Let’s cut to the chase: In Q1 2024, Ford’s EV division—called Ford Model e—posted a staggering $1.3 billion loss. That’s about $4,000 lost on every EV Ford sold that quarter. To put that in perspective, if Ford sold 30,000 EVs, that’s $120 million down the drain. Not exactly a winning formula, right?

But here’s the kicker: This isn’t a one-off. Ford Model e lost $4.7 billion in 2023 and $2.1 billion in 2022. The losses are accelerating, not slowing down. Why? Because Ford’s pouring billions into EV development while facing fierce competition, supply chain chaos, and softening demand.

Why the Losses Are So High: The Breakdown

• High R&D and Production Costs: Building EVs from scratch isn’t cheap. Ford’s spent billions on new factories (like the $5.6 billion BlueOval City in Tennessee) and battery tech.
• Price Wars: Tesla’s price cuts forced Ford to slash prices on the Mustang Mach-E and F-150 Lightning, eating into margins.
• Low Volume: EVs made up just 5% of Ford’s 2023 U.S. sales. High fixed costs + low sales = big losses.
• Battery Costs: A single battery pack can cost $15,000–$20,000. Ford’s still reliant on third-party suppliers, which hurts margins.

Real-world example: The F-150 Lightning starts at $50,000, but Ford’s cost to build it is closer to $60,000. That’s a $10,000 loss per truck. Ouch.

The Silver Lining: Ford’s Still Making Money Elsewhere

Don’t panic—Ford’s not going bankrupt. Its gas-powered vehicles (especially the F-Series trucks) are still wildly profitable. In 2023, Ford’s traditional business made $7.2 billion in profit, which is why the company can afford to lose billions on EVs. Think of it like a startup: You burn cash now to dominate the market later.

2. The Market Reality: Why Ford’s EVs Aren’t Selling Like Hotcakes

EV Demand Is Cooling—And Ford’s Caught in the Chill

Here’s a hard truth: EV sales growth is slowing. In 2023, U.S. EV sales grew just 47%, down from 50% in 2022. Why? Higher interest rates, sticker shock, and “range anxiety” are making buyers hesitant. Ford’s not immune.

• Mustang Mach-E: Sales dropped 20% in Q1 2024 vs. Q1 2023.
• F-150 Lightning: Ford cut production by 50% in early 2024 due to weak demand.

Tip for shoppers: If you’re considering a Ford EV, now’s a great time to negotiate. Dealers are sitting on inventory, and Ford’s offering incentives (like $7,500 tax credit transfers) to clear the lot.

The Competition Is Fierce—And Tesla’s Winning

Tesla still dominates the U.S. EV market (19% share in 2023), while Ford lags at 6%. Why? Tesla’s got:

• A proven track record (15+ years in EVs).
• Lower production costs (Tesla makes its own batteries and software).
• Brand loyalty (“It’s not just a car—it’s a Tesla”).

Ford’s playing catch-up. The Mach-E is a great car, but it’s not a Tesla. The F-150 Lightning is innovative, but it’s still a gas truck in an electric suit. To win, Ford needs to differentiate itself—not just copy Tesla.

The Infrastructure Problem: Charging Anxiety

Even if you buy an EV, can you charge it? Ford’s relying on third-party networks (like Electrify America), but they’re spotty. Compare that to Tesla’s 20,000+ Superchargers. Until Ford builds its own network or partners with a reliable provider, range anxiety will keep buyers on the fence.

3. Ford’s Strategy: The Plan to Stop Losing Money

1. Delay, Delay, Delay: Pushing Back Production

In 2023, Ford announced it was delaying $12 billion in EV spending. The F-150 Lightning plant expansion? Pushed to 2026. The Gen 2 EVs (like a new electric Explorer)? Now coming in 2025–2026. Why?

• Demand isn’t there yet. Why build more EVs if dealers can’t sell them?
• Focus on profitability. Ford’s shifting to lower-cost platforms (like the $25,000 “skateboard” EV) to improve margins.

Pro tip: If you’re waiting for a cheaper Ford EV, hold off until 2025. The new models should be more affordable—and Ford’s less likely to lose money on them.

2. Battery Breakthroughs: The $15,000 Game-Changer

Battery costs are the biggest hurdle. Ford’s betting on:

• LFP (Lithium Iron Phosphate) Batteries: Cheaper and safer than traditional batteries. Ford will start using them in the Mach-E in 2024.
• In-House Battery Production: Ford’s building a $3.5 billion battery plant in Michigan to cut costs.

If Ford can reduce battery costs by 30%, it could turn a $10,000 loss per EV into a $5,000 profit. That’s the holy grail.

3. Software and Subscriptions: The Hidden Goldmine

EVs aren’t just about the car—they’re about software. Ford’s investing in:

• BlueCruise: Hands-free driving (subscription: $200/year).
• OTA Updates: Like smartphones, Ford can update features remotely.
• Connected Services: Think Alexa integration, Wi-Fi, and more.

Imagine buying an F-150 Lightning for $50,000, then paying $5,000 over 5 years for software upgrades. That’s how Ford plans to make up for hardware losses.

4. The Human Factor: Why Ford Can’t Give Up on EVs

It’s Not Just About Money—It’s About Survival

Ford’s CEO, Jim Farley, has said: “We can’t afford not to be in the EV game.” Why? Because:

• Regulations: California and the EU will ban gas cars by 2035.
• Investor Pressure: Wall Street wants to see EV progress.
• Brand Relevance: If Ford doesn’t innovate, it risks becoming the “Blockbuster” of the auto industry.

Think of it like this: Ford’s losing money on EVs today so it can survive tomorrow. It’s a long-term bet.

The Workforce Dilemma: Jobs at Stake

EVs require fewer workers to build than gas cars. Ford’s UAW workers are worried. To keep them on board, Ford’s investing in retraining programs and new EV factories. It’s a delicate balancing act: innovate without alienating your workforce.

The Customer Trust Factor

Ford’s built a century of trust with gas-powered trucks. Now, it’s asking customers to trust it with EVs. That’s why Ford’s focusing on familiar platforms (like the F-150 Lightning) and real-world reliability. If the Lightning can tow like a gas truck, Ford’s halfway there.

5. The Road Ahead: When Will Ford’s EVs Turn Profitable?

The Timeline: 2026–2027 Is the Magic Window

Ford’s targeting EV profitability by 2026–2027. Here’s how:

1. 2024–2025: Focus on cost reduction (LFP batteries, in-house production).
2. 2026: Launch lower-cost Gen 2 EVs (like the $25,000 model).
3. 2027: Scale up production and software revenue.

But it’s not guaranteed. If demand stays weak or battery costs don’t drop, Ford could miss the target.

The Wildcards: What Could Change the Game

• Government Incentives: The U.S. could extend EV tax credits, boosting demand.
• New Tech: Solid-state batteries could cut costs by 50%—but they’re still years away.
• Market Shifts: If gas prices spike, EVs become more attractive overnight.

What This Means for You

If you’re a Ford shopper, here’s the takeaway:

• Buy now: You’ll get great deals (incentives, price cuts) on current models.
• Wait until 2025: Newer, cheaper EVs will hit the market.
• Watch for software: Ford’s future profits depend on subscriptions—so expect more features locked behind paywalls.

6. The Big Picture: Is Ford’s EV Gamble Worth It?

The Pros: Why Ford’s Betting Big

• First-Mover Advantage: Ford’s already got EVs on the road (Mach-E, Lightning).
• Truck Loyalty: F-150 owners trust Ford—and they’ll likely buy an electric Lightning.
• Government Support: Ford’s getting billions in grants for battery plants.

The Cons: The Risks That Keep Ford Up at Night

• Execution Risk: Can Ford build EVs fast enough to compete with Tesla?
• Market Volatility: What if EV demand crashes?
• Legacy Costs: Ford’s still tied to gas-car factories and workers.

The Verdict: A Necessary Pain

Yes, Ford’s losing billions on EVs. But it’s a necessary pain. The auto industry is changing, and Ford’s playing the long game. If it succeeds, Ford could dominate the EV truck market. If it fails? Well, let’s just say the F-150 Lightning won’t be the last electric truck.

So how much is Ford losing on electric cars? Right now, it’s losing a lot—but it’s not losing hope. And for you, the buyer, that means great deals, innovative tech, and a chance to be part of the EV revolution.

Data Table: Ford’s EV Losses (2022–2024)

Year	EV Division Loss	Key Events
2022	$2.1 billion	F-150 Lightning launch, Mach-E price cuts
2023	$4.7 billion	EV production delays, battery plant investments
Q1 2024	$1.3 billion	F-150 Lightning production cuts, LFP battery rollout

Bottom line? Ford’s EV losses are real, but they’re part of a bigger plan. The next few years will decide whether Ford’s gamble pays off—or goes down in history as a costly mistake. Either way, one thing’s clear: The electric revolution is here, and Ford’s all in. The question is, are you?

Frequently Asked Questions

How much is Ford losing on electric cars compared to gas models?

Ford is losing approximately $40,000–$50,000 per electric vehicle (EV) sold, significantly more than the profits from its gas-powered models. High battery costs, scaling challenges, and pricing pressures contribute to the gap.

Why is Ford losing money on electric cars despite high demand?

Although Ford’s EVs like the F-150 Lightning have strong demand, steep R&D investments, supply chain costs, and competitive pricing strategies erode margins. The company is prioritizing long-term market share over short-term profitability.

Is Ford’s EV loss per vehicle improving over time?

Yes, Ford’s per-unit losses on electric cars have narrowed from over $60,000 in 2022 to around $40,000–$50,000 in 2023, thanks to production efficiencies and cost-cutting. However, profitability remains a work in progress.

How much is Ford losing on electric cars annually, and what’s the impact?

Ford’s EV division lost $3.1 billion in 2022 and $2.5 billion in 2023, delaying its break-even target to 2026. These losses are funded by profits from its profitable ICE (internal combustion engine) business.

What strategies is Ford using to reduce EV losses?

Ford is slashing battery costs, simplifying designs, and scaling production to lower expenses. It’s also delaying some EV projects to focus on more profitable models, like the next-gen electric truck.

How does Ford’s EV loss compare to other automakers?

Ford’s losses per electric car are similar to rivals like GM, which also faces steep EV costs. However, Tesla remains profitable due to its early-mover advantage and lower production costs.