Ford Will Lose $3 Billion from its Electric Vehicle Division to Consumers This Year

Ford said it will lose $3 billion on its sales of electric vehicles to consumers in 2023.

“Ford said those EV losses and the overall profit both come before expenses from interest and taxes. The $3 billion loss is roughly equal to what it lost on EVs on that basis the last two years combined. It said it lost about $900 million in 2021 and $2.1 billion in 2022. It’s the first time it gave a breakout of the results from its EV operations,” CNN reported.

The company claims it plans to start making money soon as it increases production of electric vehicles and continues to build new factories and buy raw materials. Ford expects to hit the profit targets set for this year, but even if it does, according to CNN, it will still be less profitable than what is expected at the leader of electric vehicle manufacturing, Tesla.

Regardless, the CFO of Ford, John Lowler, has no doubts that the company will be able to meet its projection, per CNN. “Look, it’s about the talent we have. We all know there’s one profitable EV manufacturer. The folks that designed those vehicles are at Ford. It’s a whole new way of how we’re designing vehicles, very much focused on energy efficiency…. And we have the people at Ford that know how to do that.”