Ford Is Losing Money on Every EV F-150 They Sell

By: Ben Campbell | Published: Jan 30, 2024

Ford’s F-150 Lightning was supposed to be the electric vehicle that marked the beginning of its move toward the EV world. Yet, the production of the vehicle is currently hemorrhaging money from the company, forcing them to halt production.

The American company revealed it’s losing tens of thousands of dollars on each vehicle and decided to fire over 70% of its EV workforce as they ramp up production on gas-powered vehicles.

Unveiling of the Next Generation

Ford first announced the F-150 Lightning back in May 2021. The full-size truck is 100% electric and marked the beginning of the company’s transition to electric vehicles.

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Upclose photograph of various Ford F-150’s as they sit in a lot

Source: Joe Raedle/Getty Images

However, less than three years into production, it appears that Ford is going back on its EV commitments as news broke that over 70% of the F-150’s workforce was let go.

Gas-Powered Vehicle Expansion

Popular content creator The Electric Viking uploaded a video to his YouTube channel discussing the reduction of work at Ford’s EV plant.

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Photo inside of a large car manufacturing plant, which shows vehicles on the line

Source: Freepik

He argues this controversial move could be Ford’s way of giving up on its EV promise.

Downsizing of the F-150 Workforce

According to reports, around 1,400 workers lost their jobs at Ford’s F-150 Lightning manufacturing plant.

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Man dressed in a navy suit jacket packs up his things from his desk

Source: Freepik

The unforeseen decision has led to a fair deal of controversy for the American vehicle company, as critics see it as a shift away from the production of EVs.

Losing Money on Every Vehicle

The decision will undoubtedly raise a few eyebrows, especially considering the F-150 has been credited as the nation’s bestselling electric pickup.

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A large white vehicle is photographed as it charges up its internal battery

Source: Freepik

Yet, according to Ford’s explanation, the company loses anywhere from $34,000 to $36,000 every time it sells an F-150.

Problems Arising with the F-150

Among the minor issues leading to the vehicle’s poor financial performance, a few major concerns have drastically impacted its marketability.

An electric car is seen parked in the bay beside a charging station

Source: Freepik

Average charging speeds and poor charging infrastructure have allowed EV competitors to draw in more of the market’s customers.

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Increased Staff for Gas Vehicles

With the news of massive cuts at the F-150 plant, Ford also announced it would be taking on an extra 900 workers to increase the production of the Ford Ranger and Bronco models.

Workers assemble Ford vehicles at the Chicago Assembly Plant

Source: Scott Olson/Getty Images

Yet, as it stands, neither of these vehicles has an electric or hybrid option. Online critics have begun questioning whether Ford will keep to its promise of transitioning to environmentally friendly vehicles.

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Suppliers Raise Concerns

Investors and suppliers have been left unsure of Ford’s future after investing heavily in equipment and machines to meet the company’s initial EV targets.

A painted vehicle makes its way through a manufacturing plant

Source: Freepik

With such a drastic turn of events, many are left questioning the growth trajectory of the EV industry.

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Ford Halts Gas on EV Battery Plant

With the decrease in EV jobs, Ford also announced it is holding off on accepting $12 billion in EV investments.

In this photo illustration, an electric vehicle battery is ready for use in production at Stellantis' Ellesmere Port manufacturing plant

Source: Handout/Getty Images

The American vehicle manufacturer also postponed the opening of its electric battery plant in the state of Kentucky.

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Ford Having Problems in the EV Department

As it stands, there are more questions than answers regarding Ford’s decision to reduce F-150 production. While the company claims the delays are simply a way to reassess the market, not everyone is so sure.

Two vehicles pictured side-by-side as one charges up its electric battery

Source: Freepik

Critics believe unforeseen issues may be arising with Ford’s electric vehicle manufacturing departments.

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Problems with Supply Chains

The Electric Viking received various comments under his video, with many giving their opinion on what is truly going on with Ford’s EV production.

A man uses a large metal ratchet as he works on a vehicle

Source: Freepik

“The slow pace of EV production by the traditional OEMs means their demands for parts will be small. This means they will never establish cost-effective supply chains. If EVs are the future, traditional OEMs are, without a doubt, doomed,” wrote one user.

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Ford Advised to Wait Out the Storm

Others believe Ford needs to accept the losses until its next-gen EV F-150 is ready for release.

Ford’s F-150 Lighting pictured after winning an award in Pontiac, Michigan

Source: Bill Pugliano/Getty Images

“Ford has to curtail losses on the present F150 Lightning until their next-gen pure EV F150 is ready for production. The same for all their EVs, I would say. Efficiencies have been identified on the path to profitability but will require new pure EV designs to accomplish that,” one viewer wrote.

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