Ford Motor Company announced it is projected to lose a whopping $4.5 billion from electric vehicles (EVs) this year, up from the previous projected loss of $3 billion.
The company released its second-quarter financial results on Thursday. The U.S.-based automaker’s EV division, called “Ford Model e,” has lost $1.8 billion so far this year, according to Fortune.
The projected $4.5 billion loss is over twice as much as Model e’s $2.1 billion loss in 2022. The company recently announced that the price of its electric F-150 Lightning pickup trucks will be reduced due to cheaper raw battery materials.
The company touted that its low EV prices “establish[es] leadership ahead of industry’s next-generation EVs” and that the Ford Model e’s revenue is up 39%. Ford is also expected to produce 600,000 EVs per year by 2024.
“The near-term pace of EV adoption will be a little slower than expected, which is going to benefit early movers like Ford,” Ford CEO Farley said in a press release. “EV customers are brand loyal and we’re winning lots of them with our high-volume, first-generation products; we’re making smart investments in capabilities and capacity around the world; and, while others are trying to catch up, we have clean-sheet, next-generation products in advanced development that will blow people away.”
The company still generates a massive amount of revenue in other parts of the company. Ford’s second-quarter revenue was $45 billion, with a net income of $1.9 billion.
“Ford Model e is an EV startup within Ford,” Ford CFO John Lawler previously told reporters in March. “As everyone knows, EV startups lose money while they invest in capabilities, develop knowledge, build volume and gain share.”
Ford’s third-quarter 2023 financial results are expected to be announced on October 26.
Fox Business reached out to Ford for a statement, but has not heard back.
Fox Business’ Gary Gastelu contributed to this report.