Ford Motor Co. Announces $3 Billion Loss in Electric Vehicle Business, Still Expects to Reach Profit Targets for 2021

Ford Motor Co. announced on Tuesday that its electric vehicle business, Ford Model e, will incur a $3 billion loss this year. Despite this, the company still expects to hit its profit targets of between $9 billion and $11 billion for the year.

Ford Model e has been losing money for the past two years, with a 40% operating loss margin in 2021 and $5.3 billion in revenue. Ford expects the business to turn a profit by late 2026, with an 8% pretax profit margin.

The company has restructured its operations into three separate units: electric vehicles, internal combustion, and commercial vehicles. The $3 billion loss is roughly equal to what it lost on EVs on that basis the last two years combined. Ford said it lost about $900 million in 2021 and $2.1 billion in 2022.

Ford’s Chief Financial Officer John Lawler said in a statement that the company is “making the necessary investments to position Ford for long-term success in the electric vehicle market.” He added that the company is “confident in our ability to deliver profitable growth in the years ahead.”

Ford’s electric vehicle business is part of the company’s larger strategy to invest in new technologies and become a leader in the electric vehicle market. Despite the losses this year, Ford is confident that its investments will pay off in the long run.