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Electric vehicles (EVs) have a tall order to fill. For starters, they must deliver on replacing tailpipe emissions caused by internal combustion engine (ICE) vehicles. But beyond that promise, the high-voltage vehicles have to resonate with American buyers enough to be a serious alternative to a hybrid. However, for Ford and its EV sales, the picture isn’t looking too good. In fact, the Model e electric vehicle division reported a staggering 84% drop in EV revenue in Q1 2024 compared to the same time last year. 

The Blue Oval says price cuts are the primary cause for Ford EV sales painting a dismal Q1 2024 picture

2024 isn’t off to a spectacular start for Ford’s electric vehicle division. Ford EV sales accounted for around $100 million in the first quarter of 2024. While that sounds like cause for uncorked Champagne, it’s a substantial plummet year-over-year. In Q1 2023, the Ford Model e division earned around $700 million in EVs

Moreover, Ford attributes much of the EV sales follie to price cuts. Just take a look at the controversial Ford Mustang Mach-E. The base-model Mach E Select started at $44,995 for the 2022 model year. However, the 2024 model starts at around $41,890. That’s a price drop of over $3,000 for the entry-level electric ‘Stang. 

A yellow Ford Mustang Mach-E GT Performance Edition parks in the desert.
Ford Mach-E GT Performance Edition | Ford

Furthermore, the price gulf widens at the performance-oriented Mach-E GT level. Specifically, a 2024 Mach-E GT starts at around $55,890, about $7,205 shy of the 2022 model. On page 12 of the company’s Q1 2024 Earnings Presentation, the words “Revenue down 84%, due to industry-wide pricing pressure” are less than confidence-inspiring. As such, it might be a more affordable option for EV buyers, but it’s making the Blue Oval less in overall EV sales.

Even more shockingly, Ford’s EV division is losing around $130,000 for every EV sale in Q1 2024, per Car and Driver. That figure is enough to drop your jaw by itself. However, compared with the profitability of the Blue Oval’s commercial division, Ford Pro, it’s downright staggering. For instance, Ford earned around $7,300 for each commercial vehicle. While that doesn’t sound like much, it’s an ideal figure compared to a loss of well over $100,000 per high-voltage Ford.