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Are they still losing money if you take out fixed costs? Or are they "losing money on every EV" in the sense that the first car off a $5B production line is a $
by jjoonathan 3y ago
Are they still losing money if you take out fixed costs? Or are they "losing money on every EV" in the sense that the first car off a $5B production line is a $5B loss (modulo depreciation schedule)?
- simondotau 3y agoYes. They're losing money as in negative profit margin per unit. The more units they sell, the more money they lose.
- Tagbert 3y agoAre you basing that on their recent financial report where they showed a $3B loss? That was not an operational cost (cost of sales). It was a capitol cost (infrastructure to build and equip factories). That is not what would normally be thought of as a loss per unit.
- 93po 3y agoSources online don't say definitively, so it's hard to really know. Ford says a large portion of the loss per unit is engineering costs. They also say the expect positive margins in 2026. I imagine if it wasn't a loss beyond R&D expense they'd proudly proclaim as much, and they aren't.