Ford Motor Co (F.N) reported strong first-quarter revenue and profit, boosted by strong demand for trucks and SUVs. However, the automaker issued a cautious full-year outlook due to continued losses in its electric-vehicle unit. CEO Jim Farley stated that the company aims to become "boringly predictable" in meeting investor expectations. Farley also emphasized that Ford will not pursue electric vehicle sales volume "at any cost," in contrast to Tesla CEO Elon Musk's recent comments. Facing declining demand in China, Ford plans to restructure its operations there and focus on its commercial vehicle business, including EVs.
Ford beat analysts' expectations for first-quarter earnings and reaffirmed its guidance for full-year adjusted EBIT, which includes an anticipated loss in its Model e electric vehicle unit. The company also broke out financial results for its Ford Blue, Ford Pro, and Ford Model e units. Ford's overall EBIT margin was 8.1%, factoring in losses from Model e.
Chief Financial Officer John Lawler stated that the company is on track for its Model e electric vehicles to be EBIT margin-positive by the end of 2024. Ford expects the unit to post an EBIT margin of 8% by the end of 2026, and CEO Farley described this target as "totally realistic." Ford's profit in the first quarter was $1.8 billion, or 44 cents per share, compared with a loss a year ago. Revenue was $41.5 billion for the quarter through March, compared with $34.5 billion a year ago.
According to financial data released by Ford, the company incurred a loss of over SIXTY-THOUSAND DOLLARS per electric vehicle sold during the first quarter. In contrast, their combustion-vehicle business, Ford Blue, had an average pre-tax profit of $3,715 per vehicle, while their commercial business, Ford Pro, earned $4,053 per vehicle.
SIXTY-THOUSAND DOLLARS!!!!! WTF!!! WHY, are they even IN the business of EV's with losses like that?