Last week, it is being reported that Ford took a massive lost on each and everyFord’s electric vehicle unit reported that losses soared in the first quarter to $1.3 billion, or $132,000 for each of the 10,000 vehicles it sold in the first three months of the year, helping to drag down earnings for the company overall.
The EV unit, which Ford calls Model e, sold 10,000 vehicles in the quarter, down 20% from the number it sold a year earlier. And its revenue plunged 84% to about $100 million, which Ford attributed mostly to price cuts for EVs across the industry. That resulted in the $1.3 billion loss before interest and taxes , and the massive per-vehicle loss in the Model e unit.
Furthermore, a new report finds electric vehicles depreciate much more rapidly than those with an internal combustion engine . And the drop is dramatic….According to a recent study showing the average used car price for an EV fell nearly 32% in the past year, compared to the decline of 3.1% for gas power vehicles.
“Elon Musk’s initial price reductions on new Teslas were already impacting EV values a year ago,” iSeeCars Executive Analyst Karl Brauer said in a statement. “But his repeated price cuts kept pushing used Tesla prices down, which spread to all electric vehicles, creating weakness across the used EV market.”
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