Ford Motor Company Achieves Record Quarter for Electric Vehicle Sales
In a recent announcement, Ford Motor Company revealed that its fourth-quarter sales data showcased a remarkable performance in the electric vehicle (EV) sector. The company reported a record-breaking quarter for EV sales, contributing to its overall success in 2023.
One of the key highlights of Ford’s sales report was the 7.1% increase in their 2023 U.S. sales, reaching nearly 2 million vehicles. This growth was primarily driven by the exceptional performance of the F-Series trucks and electric vehicles. Notably, the F-Series trucks maintained their position as the best-selling trucks in America for the 46th consecutive year, while also securing the title of the best-selling vehicles for the 42nd consecutive year.
Ford’s electric trucks had a significant impact on their sales performance. The F-150 Lightning emerged as the top-selling electric truck, and the F-150 Hybrid led the chart as the best-selling full-size hybrid truck for the entire year. These achievements further consolidated Ford’s position as America’s No. 2 EV brand for 2023, with the F-150 Lightning, Mustang Mach-E, and E-Transit playing key roles.
Despite the resounding success of their EVs, Ford revealed that they still incur losses on each EV produced. In 2023 alone, it is estimated that their EV business unit, Model e, suffered losses of around $4.5 billion. However, Ford remains optimistic and expects to achieve profitability in the EV business unit by the end of 2026. Their focus on scaling production/sales, design, engineering, and reducing battery costs is believed to contribute to the realization of 8% EBIT margins by 2026.
Looking ahead, Ford anticipates significant growth in 2024, driven by their strength in full-size trucks and SUVs. The company also has plans to introduce new models in the coming year. To move closer to profitability in the EV business, Ford will need to continue posting record-breaking EV sales.
Investors are urged to consider Ford’s long-term potential and growth trajectory, as highlighted by The Motley Fool Stock Advisor analyst team. The Stock Advisor service has consistently provided guidance on building successful portfolios and has outperformed the S&P 500 since 2002.
With a strong focus on electric vehicles and ambitious goals for the future, Ford Motor Company appears to be on track to solidify its position in the rapidly evolving automotive industry.
“Social media scholar. Reader. Zombieaholic. Hardcore music maven. Web fanatic. Coffee practitioner. Explorer.”