Ford Lost $65,272 For Every EV It Sold In 1Q24. Plus: 2.7M Views Of Juice, Mapping Whales & Wind Turbines, ARC Video, & Alma Jette’s New Album
Five items on a Sunday afternoon
Ford’s electric vehicle business is gaining speed on the highway to hell. Last week, the Dearborn-based auto giant announced its first quarter results, showing that the company lost more money in its EV segment than it made in net profit over its entire business.
During the first quarter, the company made a $1.3 billion profit on $43 billion in revenue. But it took an operating loss of $1.32 billion on its Model e business. Ford sold 20,223 EVs during the quarter, meaning it lost $65,272 for each EV. That’s a slight increase over the operating loss of $64,731 (also known as EBIT, or earnings before interest and taxes) for each EV it sold during all of 2023. But the first quarter losses are also part of a monster losing streak. As I noted here on February 7, Ford lost more money on EVs last year ($4.7 billion) than it made in net profit ($4.3 billion).
Earlier this month, the company attempted to put a positive spin on its EV sector, saying the first-quarter sales numbers made the company, “America’s second best-selling EV brand behind Tesla for the quarter.” It also noted that “Mustang Mach-E posted strong Q1 sales of 9,589 SUVs — up 77 percent over a year ago.”
But in a press release published last Wednesday that carried the headline, “Customers Find Appeal in ‘Freedom’ of Ford Powertrain Choices, Contributing to Solid Q1 Results, Setting Up Strong Full Year,” Ford admitted that “revenue was down” from its Model e sector, “as wholesales declined and significant industrywide pricing pressure continued to affect electric vehicles currently on the market. The segment had an EBIT loss of $1.3 billion, with costs that were flat year-over-year. The company expects EV costs to improve going forward, but be offset by top-line pressure.”
Translated into plain English, Ford is admitting that it might be able to reduce the cost of making EVs, but it will have to continue cutting prices. Ford has, indeed, slashed prices on its EVs: last August, the cheapest Mustang Mach-E listed online by a Ford dealer here in Austin was priced at about $53,000. A search this morning on that dealer’s website showed 49 Mach-E vehicles in stock, with the cheapest ones selling for about $42,000. The dealers has also slashed prices on the most expensive Mach-Es. Last August, the most expensive Mach-E listed on its site sold for over $72,000. Today, similar EVs are selling for about $62,000.
Ford sells about 10,000 Mach-E vehicles per quarter (It sold 9,589 in 1Q24). If the company has cut the price of each Mach-E by $10,000, that translates into lost revenue of about $100 million per quarter on that model alone. That’s hardly a recipe for success.
More losses are coming. In its full-year guidance, the company expects its EV business to lose $5 billion to $5.5 billion in 2024. That’s a significant increase over the $4.7 billion Ford lost on EVs in 2023 and the $2.1 billion it lost in 2022. Thus, in Dearborn, the beatings will continue until morale improves. The critical question is obvious: how long will Ford shareholders continue to allow the company to lose such staggering amounts of money on a business that shows no sign of improvement?
Juice: Power, Politics & The Grid Hits 2.7 Million Views
Making documentaries takes a lot of time, money, and dedication. Those realities make me happy to report that our five-part docuseries, Juice: Power, Politics & The Grid, released on January 31, has had more than 2.7 million views. I’m very proud of the docuseries. Tyson Culver directed it, and he did an outstanding job. Each episode looks and sounds great and they work well as stand-alone pieces. They work even better when viewed in sequence. Why are we getting such good traction? First, we made a good product. In addition, our timing was good. There’s lots of interest in electricity and the grid these days. And that interest will continue. If you haven’t watched the docuseries, please do so. It’s free on YouTube. You can also find it at juicetheseries.com. And please, share it with your friends and colleagues.
Mapping Offshore Wind Projects And Critically Endangered Whales
Last week, with the help of my social media manager, I produced a four-minute video that clearly shows the Biden administration has approved a slew of projects that could result in hundreds of offshore wind turbines being placed right in the middle of the North Atlantic Right Whale’s habitat. As you likely know, the North Atlantic Right Whale (Eubalaena glacialis) is one of the world’s most endangered whales. Only about 360 individuals are left. So why are so few climate NGOs speaking out against the industrialization of our oceans and the danger that offshore wind poses to the whale? The video has had good traction on Twitter, with over 18,000 views. Please have a look and share it. Again, here’s a link.
ARC Video: Are the UK & Germany Committing Economic Self-Harm?
Last fall, while at the Alliance for Responsible Citizenship’s inaugural conference, I sat down with Chris Wright, Magatte Wade, and Marian Tupy to discuss the ongoing energy disaster in Europe. The video of our conversation was published last Friday. The ARC team did a great job on the editing. Chris, Magatte, and Marian are among my favorite people. It was a fun and engaging conversation. You can watch it here.
Alma Jette’s Album, “I Found A Reason,” Is Out!
I’ve known this singer for a long time. Her stage name is Alma Jette. She also goes by Mary Bryce. Her debut album came out earlier this month and it’s beautiful. I can render that opinion as her father and an avid music fan. I’m particularly partial to the title track, initially recorded by the Velvet Underground. Alma’s version is way better. The entire album is available on Spotify and Apple Music. You can follow Alma on YouTube. Five stars, highly recommended, etc.
Please click that ♡ button, y’all. Thanks.
I love her music. It is beautiful. Soothing.
Edsel, the coolest car that never sold.