Ford Motor Company’s electric vehicle sales in the United States experienced a decline in October, with a notable 8.3% drop compared to the previous year. This downturn can be largely attributed to a significant decrease in demand for the popular F-150 Lightning electric pickup truck. While the company sold a respectable 6,264 electric vehicles overall, the Mustang Mach-E SUV emerged as the sales leader. The Mach-E saw a robust 21% increase in sales compared to October 2022, with 3,313 units delivered. However, the F-150 Lightning’s sales plummeted by roughly 50%, resulting in only 1,863 units sold. This substantial dip dragged down the overall EV sales performance. Interestingly, the E-Transit electric van sales saw a remarkable 181% jump during the month.
Despite the dip in EV sales, Ford’s overall vehicle sales surged by over 15% in October, reaching 172,756 units. This positive trend was driven by a rise in sales for both hybrid and internal combustion engine vehicles. The latter, however, accounted for the majority of the company’s sales, representing approximately 86% of the total.
The decline in F-150 Lightning sales comes at a time when Ford is facing intense competition from Tesla’s Cybertruck. While Tesla reported impressive sales of 16,692 Cybertrucks in the third quarter of 2023, Ford managed to sell only 7,162 units of the Lightning during the same period, according to data from Kelley Blue Book.
Ford’s decision to halt production of the F-150 Lightning for six weeks, from November 18 to January 6, highlights the challenges it faces in navigating the evolving EV market. In a statement to Benzinga, a company spokesperson explained that this production pause was necessary to optimize the mix of sales growth and profitability.
Beyond the F-150 Lightning, Ford has also made strategic adjustments to its electric vehicle roadmap. In August, the company announced the cancellation of its plans to build a three-row electric SUV, initially scheduled for production in 2025. Furthermore, Ford has postponed the launch of a new electric version of its F-150 pickup truck to 2027 and announced plans to start manufacturing a new electric commercial van in 2026.
The company’s EV segment, known as “Model e,” reported a substantial EBIT (earnings before interest and taxes) loss of $1.2 billion in the third quarter of 2023. This loss, attributed to industry-wide pricing pressure and cost improvements, pushed the segment’s total loss for the year to $3.7 billion as of the end of September. Ford anticipates an EBIT loss of $5 billion from the segment for the entire year.
Ford’s stock price closed up by approximately 1.4% on Monday, reaching $10.36. However, the stock has experienced a decline of roughly 14.8% year-to-date, according to data from Benzinga Pro.
As the electric vehicle market continues to evolve, Ford’s ability to navigate the competitive landscape and adapt its strategies will be crucial for its future success in this rapidly growing sector.
