Ford continues to lose a lot of money with electric cars

Electric cars continue to create billion-dollar holes in Ford's balance sheet. In the past quarter, the US auto giant recorded a loss of $1.14 billion in this business segment. In contrast, internal combustion models and commercial vehicles delivered positive numbers.

Group Profit Declined

Bottom line, group profit fell by nine percent year-over-year to $1.83 billion after the electric deficit and higher provisions for warranty cases. Analysts had expected higher profitability.

The stock temporarily lost around twelve percent in after-hours trading. Quarterly revenue increased by six percent to $47.8 billion (€44 billion).

Expensive Catch-Up Race to Tesla

Ford and other U.S. automakers embarked on an expensive catch-up race to electric car pioneer Tesla during the COVID-19 pandemic. Now new capacities have been built, but buyers' interest in electric models has significantly cooled. For the entire year, Ford expects an operating loss of 5 to 5.5 billion dollars in the business.