How much money does Ford expect to lose on EVs this year?

The electric vehicle market may be booming in many ways, but there’s one area in which it’s not. EV makers for the most part are currently spending more than they’re making in producing the vehicles.

Ford, which split its passenger vehicle operations into two separate branches for EVs and combustion engines, recently reported that its Ford Model e division expects to run up an operating loss of about $3 billion in 2023. But no one at Ford appears concerned, as they’re treating Ford Model e as a startup: “As everyone knows, EV startups lose money while they invest in capability, develop knowledge, build [sales] volume, and gain [market] share,” said Ford CFO John Lawler.

So why the big losses? It’s not because Ford isn’t selling enough electric vehicles. Rather, it's that the investments required to get an EV operation off the ground cost more than the revenue, even if you’re selling a lot of vehicles. Model e is planning to produce double the number of Mustang Mach-Es that it did last year, for a total of 210,000, and the number of F-150 Lightnings will triple to 150,000. Plus, it is building battery factories in Kentucky, Michigan and Tennessee in addition to a battery development center, also in Michigan.

The good news is that Ford expects to see an 8 percent profit margin for Model e at the end of 2026 before interest or taxes.