Summary
– Ford increased EV sales by 129.2% in April, due to a rise in interest in the Mustang Mach-E
– Ford sold 8,019 EVs in April 2024, a drastic increase from the previous year
– Ford saw a record in hybrid vehicle sales in April, with 17,997 sold
– Ford’s EV division, Model e, experienced revenue decline and losses in Q1
– Ford is focusing on bringing affordable EV models to market and is cautious about future investments in larger EVs
Article
Ford managed to increase its EV sales by 129.2 percent in April compared to the same month last year, with the main driving force behind the growth being the popular Mustang Mach-E, which saw a 204.7 percent increase in sales. The company sold a total of 8,019 EVs in April 2024, a significant jump from the 3,499 sold in the same month the previous year. The Mustang Mach-E accounted for 4,893 units sold, while the F-150 Lightning contributed 2,090 units to the total. The E-Transit also saw sales of 1,036 units.
All of Ford’s EV models experienced at least a 56 percent increase in sales compared to the previous April. In addition to the growth in EV sales, Ford also set a record in hybrid vehicle sales, as global interest in this powertrain type has been on the rise. Tesla noted in its Q1 2024 Shareholder Deck that there has been a slight decrease in global electric vehicle demand as more automakers focus on hybrid vehicles. In April alone, Ford sold a record-breaking 17,997 hybrids, showcasing the growing interest in this type of vehicle.
Despite the positive growth in EV and hybrid sales, Ford’s EV unit, Model e, faced challenges in Q1, with revenues dropping by 84 percent and losses amounting to $1.3 billion. As a result, Ford made the decision to scale back its initial $10 billion investment in EVs and commit to investing between $8 billion and $9 billion in the future. CEO Jim Farley mentioned that the company aims to be on the lower end of that investment range and is prioritizing profitability moving forward.
In an effort to bring more affordable EV models to the market, Ford has established a skunkworks team led by a former Tesla employee. The team is focused on developing breakthrough innovations in the EV space to appeal to customers and drive profitability. Additionally, Ford is adjusting its strategy by reducing capital expenditure on larger EVs and concentrating on vehicles like trucks and vans where it holds a competitive advantage. The company aims to deliver highly efficient and innovative products in these segments.
Moving forward, Ford remains cautious about its EV unit’s cash burn rate and is taking a disciplined approach to investment in larger EVs. Farley mentioned that the focus will be on delivering breakthrough efficiency and innovation in these products to attract customers. For any comments, concerns, or questions, readers are encouraged to reach out via email or social media to provide feedback or share news tips. The company is dedicated to continuing its growth in the EV market and meeting customer demand for innovative and efficient vehicles.
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