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Ford brushes off $5B in losses

Illustration of Benjamin Franklin in a car's rear view mirror, with a dollar-symbol air freshener.

Illustration: Shoshana Gordon/Axios

Ford executives told analysts yesterday that the company's electric vehicles will likely lose about $3 billion this year, one year after its EVs posted another $2 billion in losses.

Why it's the BFD: Ford can absorb these kinds of losses, especially with its EV unit on track for pre-tax profitability in 2026. But cash-strapped startups like Rivian and Lucid? Not so much.

What's happening: Ford's internal combustion and fleet-vehicle divisions generated $10 billion in adjusted operating income.

  • That more than makes up for the EV unit's losses, which mounted as Ford ramped up production amid inflation, commodities volatility and ongoing supply chain challenges.

The intrigue: Some analysts had urged Ford to entirely spin off its EV division. Yesterday's financial results suggest that keeping EVs in-house instead was a wise one.

Zoom in: It's tough out there for EV-only automakers.

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