Ford Motor dropped its Q2 earnings report, which shows total revs of $45 bil for the quarter. The company’s electric vehicle division, Model E, generated $1.8 bil in revs, repping a 39% year-over-year increase. Meanwhile, Ford Blue, which includes its traditional gas-powered vehicles, saw revs of $25 bil, a 5% increase, and Ford Pro, which encompasses its commercial vehicles and services, had revs of $15.6 bil, a 22% increase.
Despite Model E’s revs doubling compared to the previous quarter, the division still suffered an operating loss of $1.08 bil, with an operating profit margin of -58.9%. Ford estimates that its electric vehicle biz will lose about $4.5 bil this year due to pricing changes, new investments, and other costs, which is 50% higher than its previous forecast.
In terms of sales, Ford’s electric vehicles experienced a significant increase in Q2, rising from 12,000 units to 34,000 units. However, this comes after a sharp decline in Q1.
Ford CEO Jim Farley acknowledged that the adoption of electric vehicles has been slower than expected but believes that this could benefit early adopters like Ford. He also noted that the company’s transition to digitalization and electrification is still ongoing and could be “very bumpy”.
Ford CEO Jim Farley said on their Q2 earnings call that the slowdown in EV demand for the industry is because the vehicles are too expensive, not because of a lack of demand.
Farley mentioned Ford says there are now 225,000 vehicles equipped with its BlueCruise self-driving tech, and that owners have driven 100M miles on it so far. “V1.3 launched in July with 5x longer engagements vs. 1.0 and will roll out to 2021–2023 MY Mustang Mach-Es via OTA”
Furthermore, Ford has delayed its goal of producing 600,000 electric vehicles annually until 2024, which is a year later than its original target. The company had initially planned to produce 2 million electric vehicles by 2026, but there is no info about any adjustments to this target in the latest financial report.
Ford’s second-generation electric vehicle lineup includes the next-generation full-size pickup truck, known as the “Ford Project T3” and a large three-row crossover SUV. According to previous reports, the Ford T3 project is set to debut in 2025.