In early 2023, Ford made a significant announcement confirming its successful acquisition of the entire annual battery-cell capacity essential for reaching its ambitious goal of selling 600,000 electric vehicles worldwide by the end of that year. This commitment encompassed various electric vehicle models, reflecting Ford’s comprehensive strategy in the rapidly evolving electric vehicle market.
F-150 Lightning: 150,000 annual run rate Mustang Mach-E: 210,000 annual run rate
Following its success in becoming the second-highest seller of electric vehicles in the United States, with over 39,000 units sold, Ford plans to nearly double the hourly production output of its Mustang Mach
In the year 2023, Ford achieved a noteworthy milestone by selling more than 72,000 all-electric vehicles, including models such as the Mustang Mach-E, F-150 Lightning, and E-Transit. This accomplishment positioned Ford as the second-leading brand in the electric vehicle segment, trailing only behind Tesla. However, despite the remarkable sales performance, the year presented its fair share of challenges for Ford.
Despite the substantial sales achievement, Ford fell short of meeting its production goals in 2023. Compounding the challenge, the company faced financial setbacks, experiencing an estimated loss of $36,000 on each of the 36,000 electric vehicles delivered to dealers during the quarter. This loss surpassed the earlier estimated loss of $32,350 per electric vehicle reported in the second quarter of the same year. The financial struggles underscored the complexities and difficulties Ford encountered in scaling its electric vehicle production and achieving profitability in the rapidly evolving market.
The global preference for traditional gas-powered vehicles over electric vehicles has compelled Ford to make a difficult decision. Due to the lower-than-anticipated demand for electric vehicles and an excess inventory of unsold EVs accumulating in their facilities, Ford has been forced to shut down its electric vehicle production plants. The unfortunate consequence of this situation is that a significant number of unsold electric vehicles are now at risk of deterioration, with some already showing signs of rust as they remain stored in company yards. This strategic move reflects the challenges faced by Ford in aligning production with consumer preferences and market demand for electric vehicles.
GAS VEHICLES OVER ELECTRIC VEHICLES The automaker anticipates a full-year financial loss of $4.5 billion for its electric vehicle (EV) unit.
The indication that there is a lack of public interest in electric vehicles (EVs) poses a risk not only to the concerned automaker but also to other manufacturers in the EV sector. This lack of interest can impact the broader electric vehicle industry, potentially affecting sales, investments, and the overall growth of the market. The success and adoption of EVs are often interconnected, and a widespread lack of interest can create challenges for various manufacturers operating in this space.