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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
23
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 11:19 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 11:33 am to DesScorp
quote:
Over a billion dollars in losses:
Posted on 4/25/24 at 11:34 am to DesScorp
So they broke even.
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 11:52 am to DesScorp
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 12:10 pm to DesScorp
Now do their profits on everything else they sell
Posted on 4/25/24 at 12:19 pm to DesScorp
Companies operate at initial losses on new technology all the time. It all depends on the business case and the math used in the forecasts for the financial situations as to wether banks will lend the money.
Posted on 4/25/24 at 12:29 pm to DesScorp
Here in Austin, a news station interviewed an owner of Dealership and he said they can not sell them and they are taking up room on their lots. The government won't let them send them back and there's another order of them coming in. They wanted to cancel any more but government said they would be fined if they didn't except them. What a mess we have in our country . Trying to force everyone to do what they don't want to do is NOT the American way.
Posted on 4/25/24 at 12:43 pm to DesScorp
Excellent way to beg for a government bail out without actually asking for one
This post was edited on 4/25/24 at 12:43 pm
Posted on 4/25/24 at 12:51 pm to DesScorp
Maybe the government will offset their losses with our tax dollars.
Posted on 4/25/24 at 12:51 pm to DesScorp
The Ford Lightning and Mustang Mach-E are both massive fricking turds, Ford has it's head so far up it's arse with their vehicle lineup. Got rid of all the sedans and double down on making stupid SUVs in every size.
Posted on 4/25/24 at 12:55 pm to DesScorp
Dont matter
Biden will just right em a check.
Biden will just right em a check.
Posted on 4/25/24 at 1:02 pm to DesScorp
quote:
Ford lost $40K on every EV it sold
Pretty sure this has been known, and all EVs are sold at a loss.
This post was edited on 4/25/24 at 1:03 pm
Posted on 4/25/24 at 1:03 pm to DesScorp
Liberals don't care or understand losses
Posted on 4/25/24 at 1:28 pm to DesScorp
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
Selling 10,000 vehicles and only getting $100 million in revenue from the sales seems off.
Posted on 4/25/24 at 2:08 pm to DesScorp
Henry Ford would crack some skulls and then fire the lot.
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