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.