- Ford (F) revealed it will suffer a $3 billion shortfall in electric vehicle sales this year. However, it is still on track to reach its profit targets of between $9 billion and $11 billion before interest and taxes. This $3 billion loss is comparable to the combined losses from the last two years, amounting to $900 million in 2021 and $2.1 billion in 2022. This is the first time the automaker has broken down the results of its electric vehicle operations.
- Despite last year's 40% operating loss margin when they sold around 96,000 EVs, bringing in $5.3 billion in revenue, Ford expects to make an 8% profit margin on their EVs by the end of 2026. They anticipate that the global production of these vehicles will have increased to a rate of 2 million annually by then.
Why it matters
Ford will be revealing their financials to investors and analysts Thursday, showcasing the progress of their transformation. Not only will the presentation provide a financial breakdown of each of their units, but it will also include data on EVs and how Ford will be reporting their results moving forward. This presentation is sure to give investors and analysts a clear picture of what the carmaker has achieved and what's yet to come.
