Ford Lost Over $100,000 Per EV In Q1. Now It’s Reportedly Cutting Battery Orders
The maker of the Mustang Mach-E is expecting its EV business to lose up to $5.5 billion this year.
Ford is cutting orders from high-voltage battery suppliers to try and keep a lid on its electric vehicle business losses, according to Bloomberg quoting people familiar with the matter.
In the first quarter of this year, Ford lost over $100,000 for every EV it built, mostly because of significant MSRP cuts. That’s double compared to last year, as per one of the sources, and the company has forecast total losses of up to $5.5 billion for its electric vehicle unit in 2024. By comparison, that’s almost as much as the profit expected to be made by the company’s internal combustion vehicle division, Ford Blue.
Get Fully Charged
Ford scales back EVs as it waits for its big win
Ford is working on an all-new, entry-level electric vehicle that could be priced as low as $25,000. But until that happens, the blue oval-bearing automaker is scaling down its EV game as it tries to cut losses.
Ford’s partnerships with battery suppliers SK On, LG Energy Solution and CATL are still up, but the American automaker has started cutting orders for battery packs as it reassesses its short-term plans after demand for EVs in the United States went well under the company’s expectations.
More Ford Stories
The blue oval auto manufacturer’s latest move comes after other EV slowdowns. Despite seeing EV sales almost double in Q1 compared to the same period last year, Ford said it would delay its upcoming all-electric pickup known as “Project T3,” as well as a next-generation battery-powered three-row SUV to let the EV market mature. In the meantime, more hybrids will make their way into showrooms.
Last year, the maker of the Mustang Mach-E, F-150 Lightning and E-Transit announced it would significantly scale down the size of its new lithium iron phosphate (LFP) battery cell plant in Marshall, Michigan. The investment in the factory also went down from an initial $3.5 billion to around $2.2 billion.
In total, Ford wants to reduce spending by $12 billion on battery-powered vehicles, according to Automotive News. However, the upcoming sub-$30,000 EV has reportedly been fast-tracked, with a debut date sometime in 2026. The entry-level EV could have a starting price as low as $25,000, which will still be enough to turn a profit for Ford, the company’s CEO, Jim Farley, said during last month’s earnings call.
"What's really exciting for us is we see an opening in the market," Farley said. "We believe we can be profitable at $25,000 or $30,000."
RECOMMENDED FOR YOU
Ford’s New Battery Container Is Here To Take On The Tesla Megapack
Rivian's New AI Voice Assistant Is Rolling Out Now
The Rarest Ford Mustang Mach-E EVs Just Got A Big Discount At Hertz
The Results Are In: 93% of Electric Truck Owners Say They’re Not Going Back
Unpacking The Beijing Auto Show, From The Xiaomi SU7 To The Ford Bronco EREV
Lexus Just Solved One Of Its Biggest EV Headaches
The Longest-Range EVs You Can Buy In 2026