In a stark reality check for the electric vehicle (EV) industry, Ford Motor Company is grappling with significant setbacks in its ambitious push into the electric car market. Once buoyed by enthusiasm and a favorable economic environment, the EV sector is now facing a sobering downturn, and Ford is at the forefront of this turbulence.
According to recent reports, Ford is projected to lose a staggering $5 billion on its electric vehicle business this year alone. This translates into a jaw-dropping loss of nearly $44,000 for every EV the company manufactures. Adding to the company’s woes, Ford’s EV sales plummeted by 37% last quarter. Last week, these troubling financials contributed to Ford’s stock suffering its worst daily performance since the financial crisis of 2008.
The grim figures have not gone unnoticed on social media, where users have shared their opinions on the beleaguered automaker. One user pointed to Tesla’s dominance in the EV market as a key factor, noting, “They have no choice. Tesla is such a leader in this space and the future is really electric. People are just not fully on board yet, but EV owners are the happiest drivers. No doubt about it. Fast, smooth, quiet, cool in style, and cool in heat. We have two EVs and two ICE. The EVs are far and away the better cars.”
However, not everyone is sold on the future of electric vehicles. Another commentator suggested that Ford should refocus on its strengths, saying, “Agree. Disaster is an understatement. It’d be better for Ford to sell its EV operations if they can’t achieve profitability and maybe diversify into other areas of the automotive industry or just stick to ICE cars that have been producing for more than a century.”
The critique of Ford’s strategy extended to its product offerings as well. “They made a mistake building their first EV in the most competitive segment. The quality of the car is fine, but value is the difficult part. They should have started with an EV Explorer. Imagine how many they could have sold before competitors like Kia’s EV9 and Rivian entered the market,” another user argued, suggesting that Ford’s entry into the EV arena was poorly timed and executed.
The broader EV market is also feeling the strain. Last year, thousands of car dealers penned an open letter to President Biden urging him to reconsider the aggressive push for electric vehicles. The letter highlighted the disconnect between government mandates and consumer demand, stating, “These vehicles are ideal for many people, and we believe their appeal will grow over time. The reality, however, is that electric vehicle demand today is not keeping up with the large influx of BEVs [battery electric vehicles] arriving at our dealerships prompted by the current regulations. BEVs are stacking up on our lots.”
The dealers called for a more measured approach, asking for “time for the battery technology to advance, for BEVs to become more affordable, and for domestic sources for the minerals to make batteries to be developed. We also need time to build and ensure the reliability of the charging infrastructure. Most importantly, we need time for the American consumer to get comfortable with the technology and make the choice to buy an electric vehicle.”
As the EV market struggles to find its footing, Ford’s challenges serve as a stark reminder of the difficulties inherent in transitioning to new technologies. Whether the company can navigate these turbulent waters and achieve profitability remains to be seen. In the meantime, the spotlight on Ford’s struggles underscores the broader issues facing the electric vehicle industry as it grapples with technological, economic, and consumer acceptance hurdles.
