Ford Motor Company is underwater thanks to electric vehicles to the tune of a $132,000 loss on each unit sold within the first three months of 2024.So, far this year, EV has lost $1.3 billion.
Electric vehicle (EV) adoption has sparked debates about its potential impact on various sectors of the economy, including in states like Oklahoma. While EVs offer environmental benefits, such as reduced emissions and dependence on fossil fuels, their proliferation poses challenges to industries tied to traditional combustion engine vehicles, potentially affecting Oklahoma’s economy in several ways.
Furthermore, many car buyers do not want EVs, and Ford revealed Friday that, as a result, the company had a 20% fall in sales volume and was forced to slash prices because of low customer demand.
While the Biden administration continues to shove the knife in the back of the auto industry, for the most part, Americans want nothing to do with EVs. The Ford Model E crashed to around $100 million in revenue, which Ford blames on EV price cuts industry wide.
In a concerning trend for Ford, recent figures reveal significant losses in their electric vehicle (EV) division, with the Model e reporting a full-year EBIT loss of $4.7 billion on the sale of 116,000 units. This equates to an average loss of $40,525 per vehicle—an alarming statistic compounded by even greater losses observed in the first quarter of 2024.
Company officials now project that the EV division will incur a staggering $5 billion loss this year, marking a substantial increase from the $4.7 billion loss recorded in the previous year.
Critics and industry observers have weighed in on these developments, offering insights into the challenges facing Ford’s EV initiatives. Andy Puzder, author and businessman, attributed the soaring losses to what he described as waning consumer interest in EVs, particularly amidst what he referred to as “Biden’s climate hysteria.”
Puzder highlighted Ford’s first-quarter losses, which reached $1.3 billion—an alarming $132,000 per EV sold. He emphasized that Ford’s profitability remained heavily reliant on sales of combustion engine vehicles, underscoring the impact of what he termed “collectivist policies” on economic prosperity.
Environmentalists like Patrick Moore expressed skepticism about the sustainability of Ford’s EV strategy, raising concerns about the company’s ability to navigate the evolving automotive landscape. Similarly, energy and environmental science expert Steve Milloy characterized Ford’s losses as a “massive EV disaster,” signaling broader challenges within the industry.
As Ford grapples with mounting losses in its EV division, industry analysts and stakeholders closely monitor developments, underscoring the complexities and uncertainties surrounding the transition to electric vehicles in an increasingly competitive market.
For Oklahoma’s oil and gas industry the effect is purely negative. The EV buying public still faces a mountain climb when it comes to perfecting the EV charging infrastructure to keep them running.
