Ford Motor Company reported a 20.8% year-over-year surge in US electric vehicle (EV) sales for November 2024, reaching a total of 10,821 units. This growth, however, tells a tale of two vehicles. While the Mustang Mach-E shone brightly, sales of the F-150 Lightning pickup truck experienced a significant downturn, highlighting the challenges and complexities within the burgeoning EV market.
The star performer was undoubtedly the Mustang Mach-E, which achieved near-record sales figures, reaching almost 6,000 units sold. This impressive performance more than compensated for the 17% drop in F-150 Lightning sales, which fell from 4,393 units in November 2023 to 3,643 in November 2024. Adding to the positive news, the E-Transit electric van also contributed significantly to the overall sales increase, with sales jumping from 271 units in November 2023 to 1,240 units in November 2024.
The decline in F-150 Lightning sales is directly linked to a planned six-week production halt at the Rouge Electric Vehicle Plant, from November 18th to January 6th. Ford attributed this decision to optimizing production for “an optimal mix of sales growth and profitability.” This strategic move underscores the company’s focus on balancing production with market demand and achieving financial stability within its burgeoning EV division.
The F-150 Lightning faces stiff competition in the US market, notably from Tesla’s Cybertruck. Third-quarter data from Kelley Blue Book reveals a stark contrast: Tesla sold 16,692 Cybertrucks, while Ford sold only 7,162 Lightning units. This underscores the challenging competitive landscape for Ford in the EV pickup truck segment.
Ford’s smaller EV lineup compared to competitors like Tesla and General Motors further complicates its strategic positioning. The company’s decision to cancel plans for a three-row electric SUV and delay the launch of a new electric F-150 to 2027 reflects a shift in strategy, prioritizing profitability and focusing on key models in the existing portfolio.
The financial picture for Ford’s Model e EV segment remains challenging. The company reported a $1.2 billion EBIT (earnings before interest and taxes) loss for the third quarter of 2024. This loss, driven by industry-wide pricing pressures that offset cost improvements, brings the total loss for the year to $3.7 billion. Ford now anticipates a full-year EBIT loss of $5 billion for its Model e segment, a significant financial hurdle for the company to overcome in its ambitious EV expansion. This financial news impacted Ford’s stock price, closing down 2.8% at $10.44 on Thursday, and is down 14.14% year-to-date.
Ford’s November sales report offers a mixed bag. While the Mustang Mach-E’s success is a positive sign, the challenges faced by the F-150 Lightning and the significant projected losses highlight the ongoing difficulties in establishing a profitable and competitive position in the rapidly evolving electric vehicle market.
