Ford has reported its first-quarter earnings, surpassing analyst expectations but with a notable decline in electric vehicle (EV) revenue. Despite a surge in EV sales, the company is pivoting its EV strategy to prioritize smaller and more affordable models, leading to a delay in production at its BlueOval City facility.
The F-150 Lightning and Mustang Mach-E were Ford’s best-selling electric models in the US, showcasing the strong demand for EVs in the market. Additionally, Ford Pro unit continues to demonstrate growth potential with the increasing adoption and sales of EVs.
On the other hand, Ford Model e EV unit faced a net loss of approximately $4.7 billion last year, but with new investments, the EBIT loss improved in the fourth quarter. In the first quarter of 2024, Ford reported revenue of $42.8 billion, although net income was lower compared to the previous year.
Despite these challenges, Ford is maintaining its full-year EBIT guidance and adjusting free cash flow expectations. The company is also launching a new brand campaign called “Freedom of Choice” to promote its gas, hybrid, and EV lineup amid the shift in strategy towards more affordable EV models.
Overall, Ford’s focus on smaller EVs and the growth potential of its Ford Pro unit signal a promising future for the company, despite the dip in EV revenue and net income. Stay tuned for more updates on Ford’s EV strategy and financial performance on MazMessenger.
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