Posted on 05/05/2022 5:10:41 AM PDT by Red Badger
Ford Motors admitted this month that its huge gamble on electric vehicles caused it to lose $3.1 billion already this year.
The Detroit giant sunk $5.4 billion in its newest electric vehicle (EV), the Ford Rivian, during the first quarter of this year. And it was one gigantic loser.
According to the company’s earnings report released on Wednesday, Ford reported revenue of $34.5 billion between January and March, a 5% decline over the same period in 2021, and a net loss of $3.1 billion.
“A net loss of $3.1 billion was primarily attributable to a mark-to-market loss of $5.4 billion on the company’s investment in Rivian,” Ford said.
Per the Daily Caller:
Rivian has posted massive profit losses of its own and its share price has plummeted nearly 70% over the last six months. The value of Ford’s roughly 102 million Rivian shares has fallen from about $17.5 billion to $3.2 billion since November.
“The capability of this business is much stronger than what we were able to provide in the quarter,” Ford CFO John Lawler said Wednesday, The Wall Street Journal reported.
Rivian, a California-based company founded in 2009, went public in November, according to the WSJ. Investors quickly scooped up shares of the startup EV maker at the time, but recent poor performance has driven many investors away.
In the final three months of 2021, Rivian reported a net loss of $2.5 billion.
Which unless you are a Democrat talking about an addition to the deficit is considered a lot of money.
Rivian CEO RJ Scaringe also delivered a dire warning to car companies looking to push these unwanted, money-losing EVs. He noted that the supply chain couldn’t help EVs replace gas-powered cars if they wanted to. In particular, the gigantic batteries the cars use simply can’t meet demand.
“Put very simply, all the world’s cell production combined represents well under 10% of what we will need in 10 years,” Scaringe said last week as he talked about any increase in EV production. “Meaning, 90% to 95% of the supply chain does not exist.”
They shouldn’t worry, though. No one wants these pieces of garbage.
Cross Posted with iPatriot
Ford’s loss over electric car gamble
Go woke, go broke.
Won’t be long, one will be able to buy Ford stock for less than $10 bucks.....
The problem is that no one is FORCED (yet) to buy electric cars. So once the Virtue Signaling bunch had theirs (mostly Teslas), that pretty much put a cap on sales...as we’re now seeing.
But soon the Ukraine supporters will MANDATE Electric Cars for everyone, so Ford and the other ‘old’ car manufacturers will do fine.
“Go woke, go broke.”
...I couldn’t say it better. Or too often.
But Ford seems to be bringing in good revenue on their other EV ventures. I guess it remains to be seen if the revenues for the next few years will offset the yuge upfront cost (i.e. all the engineering, creating the EV plant in Michigan for the F-150 Lightning, etc.). So far the sales of the Mach-E and tons of back orders for the Mach-E, Lightning, and EV van suggest they'll make a nice profit from their EV's.
Ford might be assuming that the stupid administration will fork over 5 billion at no cost because of their addiction to ‘green energy’. They did it for Chrysler and GM, why not Ford?
If…IF battery technology improves, I’m good with EVs. This is coming from someone who drives a gas powered race car for fun. EVs have fewer moving parts, they are fast as stink, and when people are sitting motionless in rush hour traffic they don’t make a sound or any emissions at all. I love gas powered cars, but I see the potential for EVs. We don’t use steam engines anymore because something better came along. Let’s see what happens. If nothing else they’d be great for inner city commuting. Not so great for OTR driving.
They won’t go broke.
Deep State will use taxpayer money to cover the loss.
Betcha...
Well actually they go woke and the general population goes broke as the government subsidizes this insane move to EVs.
The key is yet. California had decided that 2030 is going to be their target. On paper, it's a great idea. But they have done nothing to prepare for the transformation. They should be building at least 10 new nuclear plants in California right now. But if course nothing is happening. It's California.
Go Green, get Green.
Guaranteed this is on the taxpayer's backs.
Imagine the Daytona 500 in absolute SILENCE..................
Surprise!!!
the game plan is to send gas prices into the stratosphere to make EVs “affordable”
Speaking of Rivian: https://freerepublic.com/focus/f-bloggers/4060541/posts
“ Imagine the Daytona 500 in absolute SILENCE.”
It would be weird, for sure. Formula E races sound weird. The roar of the V8 is indeed a siren song for many of us. If you’ve ridden in an EV, you know the instantaneous torque will put a smile on your face. I think we’ll get used to the sound, or lack thereof, eventually.
Yes, I’ve ridden in an EV.
It’s called a Golf Cart...........................
lol!
Amen.
Every bit of that car comes out of a mine. Before too long the moron environmentalists will come after the EV car makers and wipe them out for doing exactly what they asked them to do in the first place.
Very, very little waste in the refinement of oil. The only waste product is pentane, which is so volatile it can’t be used. Everything else about a barrel of oil is useful.
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