Ford cancels EV battery orders as losses widen to $130,000 per vehicle sold
It was recently revealed that Ford is re-evaluating its commitment to a 2030 all-electric line-up in Europe, thanks to seemingly cooling EV demand. However, it seems the company's embattled Model e division is in deeper trouble than it had previously let on. According to a report by Bloomberg, Ford has started cancelling battery orders to reduce the financial strain the Model e division has on the company.
Bloomberg's "sources familiar with the matter" claim that Ford has slashed battery orders in order to cope with decreasing EV demand. The news of Ford's battery order cancellations comes in light of a recent financial report [PDF] that revealed Ford is now losing around $130,000 per EV sold under its current Model e program, despite seeing its EV sales grow (via Ford [PDF]) by 96.6% year over in April.
This sharp increase in EV losses is more than double what Ford was losing just last year, when it was reported that the company lost just over $58,000 per EV sold.
More troubling still is the rising threat from Chinese EV makers, like BYD, and the ongoing price war Tesla has gotten itself involved in. These factors all make it far more challenging for Ford to sell electric vehicles at the prices it needs to recoup costs. That said, Ford CEO, Jim Farley, recently made comments implying that the American car company would soon be investing heavily into a compact Ford EV to challenge more affordable EVs from other brands.
