Ford’s first-quarter earnings for 2024 have been making headlines, with the company experiencing a mix of successes and challenges in the electric vehicle (EV) market. Despite beating analyst expectations overall, Ford faced an 84% decline in EV revenue in Q1 2024.
One of the key highlights for Ford was the significant increase in EV sales, which surged by 86% to reach 20,233 units sold in the first three months of 2024. The F-150 Lightning emerged as the top-selling electric pickup in the US, with a notable 80% increase in sales compared to the previous year. Similarly, the Mustang Mach-E secured its position as the second best-selling electric SUV in the US, with a 77% sales growth over Q1 2023.
However, Ford’s commercial Pro unit has been a standout performer, with a 40% rise in EV adoption. Sales of the Ford E-Transit saw a significant increase of 148% in Q1, with 2,891 units sold. These positive results have propelled Ford to the second position in the US EV market, excluding combined Hyundai and Kia sales.
Despite the success in sales, Ford announced delays in EV production at its BlueOval City facility, pushing the timeline to 2026. The launch of the three-row electric SUV has also been postponed to prioritize the development of smaller and more affordable EV models. Additionally, Ford plans to introduce more hybrid vehicles while working on its next-generation electric models.
On the financial front, Ford’s Model e EV unit reported a net loss of approximately $4.7 billion in the previous year, attributed to competitive pricing and new investments. The EBIT loss decreased to $1.6 billion in Q4.
Analysts are anticipating Ford to report a revenue of $40.10 billion in its Q1 2024 earnings, with the Model e EV unit expected to generate around $24.5 billion in revenue alongside an EBIT loss of $1.65 billion.
In the first quarter of 2024, Ford’s revenue increased by 3% to $42.8 billion, surpassing the estimated $40.10 billion. The company also exceeded adjusted EPS expectations, reporting $0.49 per share in Q1 compared to the expected $0.42. However, net income decreased to $1.3 billion from $1.8 billion the previous year, and adjusted EBIT fell by 18% to $2.8 billion due to lower prices and the timing of the F-150 launch.
While Ford Blue, the company’s ICE business, experienced a 13% decline in revenue, Ford Pro emerged as a growth driver with a 21% increase in volume and a 36% rise in revenue. The commercial and software business achieved an EBIT margin of nearly 17%, with first-quarter revenue reaching $18 billion.
