Ford Just Proved How Far Ahead Tesla Really Is
Profitability May Continue to Be a Struggle for All Legacy Automakers
In efforts to capitalize on the growing demand for electric vehicles, several automakers have developed bold plans for EV adoption. One such company trying to stay at the forefront of EV technology has been Ford.
Given that the Mustang Mach-E is the best-selling non-Tesla EV across the US, and that the F-150 Lightning has gained 200,000 pre-orders, many would believe that Ford is in one of the best positions to challenge Tesla for market dominance. But, as the automaker just revealed, high demand doesn’t necessarily tell the full story.
Despite wanting to be a fully-electric brand by 2035, as of Q4 2022, Ford’s average net margin on the Mustang Mach-E was -40.4%. Unfortunately, that’s a figure that’s only gotten worse since, to the point where Ford is now losing an average of $58,000 for every EV sold.
So, given these tragic margins, will Ford ever be able to smooth out the manufacturing process enough to make EV production profitable? And, if so, does Ford have any chance of catching up to Tesla?
Let’s find out.
