The electric car revolution is facing some problems. While sales are going up, they’re not going up as fast as people thought they would. Companies like Ford are losing a lot of money on each electric car they sell, adding up to billions of dollars. Now, Ford is starting to think that maybe it should have focused more on making smaller, cheaper cars instead of expensive electric SUVs.
Ford isn’t the only one facing these issues. Mercedes’ Chief Financial Officer, Harald Wilhelm, said the electric car market is tough after the company reported lower profits and sales because of electric cars. GM also reported big losses because of electric cars earlier this year. Things are getting better for Ford, but it’s still losing money, along with other car companies.
Ford made a big decision in 2018 to stop making small cars like the Fiesta, Focus, Fusion, and Taurus. If it wasn’t a big truck or SUV, Ford didn’t want to make it anymore. Then, a few years later, Ford said it was going all-in on electric cars and spent a lot of money on them. They made the Mustang Mach-E and F-150 Lightning, which were popular when they came out.
But now, Ford is seeing the consequences of its choices. The company lost $1.3 billion on electric cars in just three months, which means they lost $130,000 for every electric car they sold. Even Ford’s “Model e” division, which works on electric car tech, saw an 84 percent drop in revenue.
Ford is still making money from selling big trucks and SUVs like the Escape, Explorer, Expedition, and Bronco. But now, Ford is focusing on making smaller, cheaper electric cars for the future.
They’re working on new battery technology and coming up with ideas for small electric cars that are perfect for city living. The CEO of Ford, Jim Farley, thinks this is where electric cars will become popular the fastest. He says Ford can compete in making small, affordable electric cars in a special way. All we can do is wish them luck.
