Whoa, got my gulp on for this one when I read it.
We’ve had really good discussions about the realignment in the EV market. How the truck segment looks really shaky, how Elon has been shaking up the sedan side of the house with his price reductions, and how Ford is all shook up losing fistfuls of cash with every EV it sells.
…The most striking figure is that of the net loss per electric vehicle sale. As calculated by Carscoops, Ford loses $32,000 USD on every EV it sells. Model e, Ford’s new electric division, lost $1.8 billion in the second quarter of 2023, on sales of just 34,000 electric and plug-in hybrid models. It had forecast that it would lose $3 billion this year, but now believes losses will hit $4.5 billion.
Clearly, the price war with Tesla hasn’t helped matters. The unusual aspect to this battle royale is that the traditional roles are reversed. Here we have the smaller company hurting a giant firm like Ford in a price war.
You look at those numbers and think. “How is this sustainable?” And it’s not, even with Uncle Sam plugging buttloads of bucks into the industry.
But the struggling D-3 operations, and the EV automakers that have gone under this…
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