Firstly, Ford Model e, the division responsible for EVs, only delivered 12,000 units during the first quarter. This reduced volume can be attributed to scheduled downtime at the plant in Mexico that produces the Mustang Mach-E. The temporary slowdown is expected to increase output to 210,000 units per year by the end of 2023.
Additionally, Ford is currently investing heavily in scaling production, including $3.5 billion being spent on the construction of the LFP battery plant in Michigan and BlueOval City in Tennessee. These facilities will produce Ford's next-generation electric truck, with a capacity of 500,000 units per year, in 2025.
Meanwhile, Ford's ICE and commercial operations are thriving. Ford Blue, which handles the production of internal combustion vehicles, reported a net income before interest and taxes of $2.6 billion in the first quarter, with an operating margin of 10.4%.
Despite the significant losses incurred by the EV division, Ford's sustained profitability from its ICE and commercial lines provides a buffer for its long-term play in the EV space.
Source: Ford