Ford Set to Lose Billions After Investment in Electric Vehicles

The Ford Motor Company is set to lose over $3 billion on electric vehicles this year as the push for consumers to transition to EVs has been met with difficulty.

The loss was announced on Thursday when the company provided investors with an analysis of its three major business sectors of electric vehicles, Model e, its traditional combustion engine models, Ford Blue, and its commercial line of vehicles, Ford Pro.

Ford finance chief John Lawler attempted to assuage worried investors by describing the EV business as needing a start-up mentality in order to be successful, as reported by the Wall Street Journal.

“Startups lose money as they invest in capability, develop knowledge, build volume, and gain share,” Lawler said.

The finance chief went on to explain that the company expects its EV lineup to achieve a profit margin of eight percent by 2026.

WATCH: TIKTOK CEO CRASHES AND BURNS IN HOUSE HEARING – ‘IT WAS A DISASTER’

The company currently sells three electric vehicles in the United States including the F-150 Lighting, the Mustang Mach-E SUV, and a plug-in cargo van.

The embrace of electric vehicles by large American automakers has largely been driven by federal subsidies via legislation like the Inflation Reduction Act which provided substantial subsidies for electric vehicle production.

While Ford continues to invest in its EVs, it still pales in comparison to Elon Musk’s Tesla which has an impressive operating margin of 16.8 percent.

As companies like Ford continue to attempt to push electric vehicles on consumers, EV’s innate shortcomings are likely stopping consumers from choosing the option over a gas-powered car.

With long charge times, short battery life, and high prices, consumers, particularly every day middle-class American, are very weary about adopting an EV over a traditional vehicle. Without significant technological advancement, for now, most Americans will continue to reject EVs.

You Can Follow Sterling on Twitter Here