Say it ain’t so. The Ford Mustang Mach-E isn’t currently profitable for the Blue Oval. The innovative electric SUV has quickly become somewhat of a risky investment because of external factors like a supply chain crisis. Here’s why Ford’s electric SUV isn’t exactly raking in the dough.

The Ford Mustang Mach-E is too expensive to make to be profitable at the moment

Ever wonder why electric vehicles are so darn expensive at times? While electric vehicles may resemble their internal combustion engine predecessors externally, internally they’re a whole different animal. Electric vehicles rely on materials like lithium and cobalt for their batteries. The mining process for these precious materials can be very expensive.

Furthermore, electric vehicle production isn’t as streamlined for most automakers as internal combustion engine vehicle production. While fully electric automakers like Tesla may have the process down pat, many other automakers have had to collaborate and outsource the design and development of different EV components. The end result is a more expensive process that inevitably produces more expensive vehicles.

Add a supply chain crisis and inflation to the mix and you get the perfect storm that is currently driving EV prices up. Automakers often feel the need to competitively price EVs in their respective segments. These prices may not be sustainable for some automakers, as many EV nameplates just haven’t turned a profit yet.

According to Ford Authority, the Mustang Mach-E nameplate isn’t profitable for Ford, and it may not be profitable for some time. Ford is betting big on electric vehicles. It is even splitting the company down the middle so half of its workforce, Ford Model E, can work on the development and production of new electric vehicles. Is Ford’s electric SUV a fail?

Is the Ford Mustang Mach-E a failure?

The 2021 Ford Mustang Mach-E is Ford’s first-ever fully electric vehicle. The electrified Mustang SUV sparked plenty of controversy and skepticism when it debuted. The electric SUV quickly won over many Blue Oval fans and amassed a huge following.

The Mach-E and Ford F-150 Lightning are marketed as the future of Ford. The Mustang Mach-E was the electric vehicle of the year in 2021. It has run into quite a few hiccups in 2022. Its most recent recall affects 48,924 of the electric SUVs.

The Ford Mustang Mach-E may have fallen on some hard times, but the nameplate can rise again. The Blue Oval’s electric SUV has what it takes to get back on top.

Should you buy a 2022 Ford Mustang Mach-E now?

The Ford Mustang Mach-E is one of the most competitive electric SUVs on the scene, but buying one fresh off of a recall may not be appealing to most consumers. The Mach-E has battled its fair share of software bugs in recent months.

On the other hand, who knows how long Ford EVs will be eligible for the full $7,500 federal electric vehicle tax incentive. The Mach-E isn’t out of the race completely, but it certainly isn’t in first place at the moment.

Read more about the Mach-E in the next article below.