published : 2023-10-28

Ford Stock Plunges as EV Losses Widen: A Thrilling Tale of Challenges and Learning Loss

Ford lost nearly $37K on every electric vehicle sold in the third quarter

A photo of Ford Motor Co. corporate logo taken on a sunny day, showcasing the resilience of the automaker (Taken with Nikon D850).

Shares of Ford Motor Co. took a dramatic plummet, closing down over 12% on Friday. This sharp decline followed the company's withdrawal of its full-year forecast, citing uncertainty surrounding its tentative deal with the United Auto Workers and mounting losses in its electric vehicle division.

In its third-quarter earnings report released on Thursday, Ford reported a staggering loss of $1.33 billion in earnings before interest and taxes (EBIT) in its EV unit. This was a significant increase from the $1.08 billion hit the segment took in the previous quarter.

The figures paint a distressing picture for Ford, as it reveals that the automaker suffered an operating loss of almost $37,000 on every EV it sold last quarter. The forecast for the Ford Model e unit stands at a daunting full-year loss of $4.5 billion.

Despite these alarming numbers, Ford did see a glimmer of hope in its third-quarter revenue, which experienced an impressive boost of 11%, reaching $44 billion. Additionally, the company reported a $1.2 billion profit, showcasing its resilience in the face of adversity. It's worth noting that during the same quarter last year, Ford had incurred a loss of $827 million.

A captivating image of CEO Jim Farley passionately addressing the audience during the earnings call, demonstrating his commitment to tackling EV challenges (Taken with Canon EOS 5D Mark IV).

Ford's warning of continued pressure on electric vehicles stems from customers' resistance to pay a premium for EVs compared to other models. CEO Jim Farley acknowledged the 'affordability issue' during the company's earnings call, which further emphasizes the uphill battle Ford's EV division faces.

Consequently, Ford has announced plans to take decisive action. Production cuts are imminent for its Mustang Mach-E, and investments in its EV division, amounting to approximately $12 billion, will be scaled back. This includes the delayed construction of a second battery plant in Kentucky.

The ongoing challenges faced by Ford in the realm of electric vehicles highlight the need for innovation and adaptability within the industry. The company's struggles parallel a broader societal issue - the pandemic learning loss for children. This, too, requires urgent attention and creative solutions.

Through a thrilling discussion on 'The Big Money Show', 'Fox & Friends Weekend’ co-host Pete Hegseth and Lydia Hu of FOX Business dive deep into these critical topics: the pandemic learning loss for children and the challenges of EV charging. The convergence of these narratives underscores the need for transformative thinking and bold action to address the complex issues of our time.

A visually stunning photograph of the Mustang Mach-E, highlighting its sleek design and symbolizing Ford's determination to overcome obstacles in the electric vehicle market (Taken with Sony Alpha a7 III).

Ford's dramatic stock plunge, the widening losses in its EV division, and the profound impact on our children's education serve as a clear call to action. Now is the time for innovative solutions and strategic investments that will shape a brighter future. The journey ahead may be arduous, but the rewards will be nothing short of extraordinary.

Sources: Reuters