Ford Motor Co. shares closed down more than 12% Friday after the company withdrew its full-year forecast, citing “uncertainty” over its tentative deal with the United Auto Workers and broader losses in its electric vehicle division.
The automaker reported a higher-than-expected $1.33 billion loss in earnings before interest and taxes (EBIT) in its EV unit in its third-quarter earnings report Thursday, up from the $1.08 billion hit the segment took in the second quarter.
That means Ford took an operating loss of nearly $37,000 on every EV it sold last quarter. The company has forecast a full-year loss for the Ford Model e unit of $4.5 billion.
FORD, GM, MERCEDES COME CLEAN ON EV DEMAND WEAKNESS
Ford posted revenue of $44 billion for the third quarter, an 11% boost, and reported a $1.2 billion profit. The company lost $827 million the same quarter a year ago.
|FORD MOTOR CO.
Ford warned of continued pressure on electric vehicles as customers balk at paying a premium for EVs over other models.
US TREASURY DEPARTMENT TO ALLOW $7,500 ELECTRIC VEHICLE TAX CREDIT AS POINT-OF-SALE REBATE STARTING IN JANUARY
CEO Jim Farley said in the company earnings call that, for customers, there is an “affordability issue” when its comes to EVs.
The company said it will slash production of its Mustang Mach-E and plans to scale back around $12 billion in investments in its EV division, including a delay in a second battery plant in Kentucky.
Reuters contributed to this report.
Read the full article here