- My Forums
- Tiger Rant
- LSU Score Board
- LSU Recruiting
- SEC Rant
- SEC Score Board
- Saints Talk
- Pelicans Talk
- More Sports Board
- Fantasy Sports
- Golf Board
- Soccer Board
- O-T Lounge
- Tech Board
- Home/Garden Board
- Outdoor Board
- Health/Fitness Board
- Movie/TV Board
- Book Board
- Music Board
- Political Talk
- Money Talk
- Fark Board
- Gaming Board
- Travel Board
- Food/Drink Board
- Ticket Exchange
- TD Help Board
Customize My Forums- View All Forums
- Show Left Links
- Topic Sort Options
- Trending Topics
- Recent Topics
- Active Topics
Started By
Message
Ford lost $40K on every EV it sold
Posted on 4/25/24 at 11:01 am
Posted on 4/25/24 at 11:01 am
Over a billion dollars in losses:
CNN link
quote:
Ford’s electric vehicle unit reported that losses soared in the first quarter to $1.3 billion, or $132,000 for each of the 10,000 vehicles it sold in the first three months of the year, helping to drag down earnings for the company overall. Ford, like most automakers, has announced plans to shift from traditional gas-powered vehicles to EVs in coming years. But it is the only traditional automaker to break out results of its retail EV sales. And the results it reported Wednesday show another sign of the profit pressures on the EV business at Ford and other automakers. The EV unit, which Ford calls Model e, sold 10,000 vehicles in the quarter, down 20% from the number it sold a year earlier. And its revenue plunged 84% to about $100 million, which Ford attributed mostly to price cuts for EVs across the industry. That resulted in the $1.3 billion loss before interest and taxes (EBIT), and the massive per-vehicle loss in the Model e unit.
CNN link
Posted on 4/25/24 at 11:11 am to DesScorp
Could this also be leading to other cars being more expensive? Offsetting some of their losses by raising the prices on ICE vehicles?
Posted on 4/25/24 at 11:13 am to thadcastle
quote:
Could this also be leading to other cars being more expensive? Offsetting some of their losses by raising the prices on ICE vehicles?
They mostly do this to pull up a bunch of capex depreciation and R&D expense to offset profits from other business units so they don't have to pay taxes.
Posted on 4/25/24 at 11:13 am to thadcastle
quote:
Could this also be leading to other cars being more expensive? Offsetting some of their losses by raising the prices on ICE vehicles?
No. Other cars got expensive before they were forced to build EVs. Their cost rate is dictated by greedy dealerships adding 10K onto their vehicles for a dealer fee along with stupid people who don't understand debt to income ratio and can't go without buying the next newest biggest thing
Posted on 4/25/24 at 11:15 am to thadcastle
quote:
Ford lost $40K on every EV it sold
Posted on 4/25/24 at 11:18 am to Midget Death Squad
quote:
stupid people who don't understand debt to income ratio and can't go without buying the next newest biggest thing
We are doing all of this to ourselves and we can't stop it because we don't understand what is actually happening. All we have to do is stop buying.....
Posted on 4/25/24 at 11:18 am to thadcastle
quote:
Could this also be leading to other cars being more expensive? Offsetting some of their losses by raising the prices on ICE vehicles?
Only if you buy the fords
Posted on 4/25/24 at 11:19 am to DesScorp
quote:
Ford lost $40K on every EV it sold
They actually lost 40K FOR every EV sold.
Saying they lost 40K ON every EV sold implies that if they sold another EV they would lose another 40k.
A lot of the money lost was due to investing in technology to make the cars, not due to them selling the cars for 40k less than the parts cost to build them.
Anyway carry on, just a grammar lesson for the day.
This post was edited on 4/25/24 at 11:22 am
Posted on 4/25/24 at 11:22 am to DesScorp
quote:
Ford’s electric vehicle unit reported that losses soared in the first quarter to $1.3 billion, or $132,000 for each of the 10,000 vehicles it sold in the first three months of the year
These numbers are totally meaningless... they are likely shoving all sorts of crap into it. Accelerated depreciation of the new plants and equipment, r&d costs, etc.
quote:
The EV unit, which Ford calls Model e, sold 10,000 vehicles in the quarter, down 20% from the number it sold a year earlier. And its revenue plunged 84% to about $100 million, which Ford attributed mostly to price cuts for EVs across the industry.
Now, these numbers have a ton of meaning. If EV is the future, then units sold and revenue shoud be increasing... whereas this shows that even despite price cuts, they are selling less units.
I think at this point, almost everyone who wants an EV has an EV. The market is sautrated. Additionally, many EV owners are not yet in a need to replace their EV with another EV. It could be a number of years before replacement demand kicks in.
Posted on 4/25/24 at 11:22 am to billjamin
quote:
quote:
Could this also be leading to other cars being more expensive? Offsetting some of their losses by raising the prices on ICE vehicles?
They mostly do this to pull up a bunch of capex depreciation and R&D expense to offset profits from other business units so they don't have to pay taxes.
All that sums up to yes.
Posted on 4/25/24 at 11:23 am to Corinthians420
quote:
They actually lost 40K FOR every EV sold.
Saying they lost 40K ON every EV sold implies that if they sold another EV they would lose another 40k.
A lot of the money lost was due to investing in technology to make the cars, not due to them selling the cars for 40k less than the parts cost to build them.
Anyway carry on, just a grammar lesson for the day
This isn't a grammar iissue... this is intentionally misleading to try to drive a political point.
Posted on 4/25/24 at 11:27 am to Beessnax
quote:
We are doing all of this to ourselves and we can't stop it because we don't understand what is actually happening. All we have to do is stop buying.....
Gotta get that Insta-cred though, yo!
Posted on 4/25/24 at 11:29 am to LSUFanHouston
quote:
quote:
They actually lost 40K FOR every EV sold.
Saying they lost 40K ON every EV sold implies that if they sold another EV they would lose another 40k.
A lot of the money lost was due to investing in technology to make the cars, not due to them selling the cars for 40k less than the parts cost to build them.
Anyway carry on, just a grammar lesson for the day
This isn't a grammar iissue... this is intentionally misleading to try to drive a political point.
Very misleading if that's the case because then they actually didn't lose anything. They still have the investments made to make the vehicles. So next year all that is already covered.
Posted on 4/25/24 at 11:33 am to DesScorp
quote:
Over a billion dollars in losses:
Posted on 4/25/24 at 11:38 am to DesScorp
quote:
To manufacture a Tesla model Y battery, it you need:
--12 tons of rock for Lithium (can also be extracted from sea water)
-- 5 tons of cobalt minerals (Most cobalt is made as a byproduct of processing copper and nickel ores. It is the most difficult and expensive material to obtain for a battery.)
-- 3 tons nickel ore
-- 12 tons of copper ore
You must move 250 tons of soil to obtain:
-- 26.5 pounds of Lithium
-- 30 pounds of nickel
-- 48.5 pounds of manganese
-- 15 pounds of cobalt
To manufacture the battery also requires:
-- 441 pounds of aluminum, steel and/or plastic
-- 112 pounds of graphite
The Caterpillar 994A is used to move the earth to obtain the minerals needed for this battery. The Caterpillar consumes 264 gallons of diesel in 12 hours.
The bulk of necessary minerals for manufacturing the batteries come from China or Africa. Much of the labor in Africa is done by children. When you buy an electric car, China profits most.
The 2021 Tesla Model Y OEM battery (the cheapest Tesla battery) is currently for sale on the Internet for $4,999 not including shipping or installation. The battery weighs 1,000 pounds (you can imagine the shipping cost). The cost of Tesla batteries are:
Model 3 -- $14,000+ (Car MSRP $38,990)
Model Y -- $5,000–$5,500 (Car MSRP $47,740)
Model S -- $13,000–$20,000 (Car MSRP $74,990)
Model X -- $13,000+ (Car MSRP $79,990)
It takes 7 years for an electric car to reach net-zero CO2. The life expectancy of the battery is 10 years (average). Only in the last 3 years do you start to reduce your carbon footprint, but then the batteries must be replaced and you lose all gains made.
Posted on 4/25/24 at 11:50 am to Steadyhands
quote:
Very misleading if that's the case because then they actually didn't lose anything. They still have the investments made to make the vehicles. So next year all that is already covered.
Fixed costs vs variable costs.
ECON 101
Posted on 4/25/24 at 11:52 am to DesScorp
This post was edited on 4/25/24 at 11:54 am
Posted on 4/25/24 at 11:55 am to SPEEDY
you should have left that on BoomerBook where it belongs.
Popular
Back to top
Follow TigerDroppings for LSU Football News