Ford Authority

Future Ford EVs Will Be Profitable 12 Months After Launch

Over the past couple of years, Ford CEO Jim Farley has been keen to talk about the automaker’s second-generation all-electric vehicles, which will be simplified, fully updatable, and ride on dedicated platforms, making them quite profitable – which isn’t the case with the automaker’s first-generation Ford EVs. However, while Farley has previously mentioned timelines in regards to when the company expects current EVs to become profitable, he just shared those same details regarding second-gen Ford EVs while speaking to investors on the automaker’s Q4 2023 earnings call, too.

“Our overall EV strategy has never been more relevant as the seismic change happens, and we want to share with you our targets,” Farley said. “Our next Gen 2 products will be profitable in the first 12 months of their launch. And that will mean that we’ll get to mid-to-high single-digit EBIT profit margins over their life cycle, and that’s going to deliver profits above Model e’s cost of capital. And here are our big bets and adjustments. We’re going to spend less capital on larger EVs. And as we’ve always said, we’ll have a very small number of those.”

As Farley notes here, Ford plans to invest more in cheaper, smaller EVs moving forward as the company aims to ramp up sales as prices for those types of vehicles continue to prove to be a big barrier for consumers. Additionally, FoMoCo may also delay the launch of certain EVs as it continues to retool its strategy, too.

Otherwise, we already know that all future Lincoln EVs will be second-generation models, as Farley previously shared, and all of its next-gen products will come packed with digital experiences. The Ford CEO also recently noted that the automaker may wind up using a 48-volt electrical architecture as well, which is something the Tesla Cybertruck currently utilizes.

We’ll have more on Ford’s EV strategy soon, so be sure and subscribe to Ford Authority for 24/7 Ford news coverage.

Brett's lost track of all the Fords he's owned over the years and how much he's spent modifying them, but his current money pits include an S550 Mustang and 13th gen F-150.

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  1. Anna

    Dream On!!!

  2. Jonathan

    The Nationwide grassroots boycott against EVs says otherwise.

    1. Brett Foote

      EV sales in the U.S. hit a new record of 1.2 million units in 2023, so it doesn’t seem as if your nationwide grassroots boycott is working.

      1. Shane

        And latest automotive news articles state EV sales bombed, far below expectations. Ford even admitted they lose $42K on every single EV sold. No one wants them, they already failed thankfully.

        1. Brett Foote

          Ah yes, the same old copy and pasted comments from the same IP address using different names and emails. How much do you get paid to post them?

  3. Terry

    EVs are junk…costly junk, but junk never the less.

  4. Glenu

    Is that the same grassroots”‘ boycotters” that used to say – get a horse.

  5. John

    Don’t care

  6. DRW

    Profitable 12 months after launch? Sounds like an Elon-Musk-type-promise.

  7. Jake

    I traded my Tesla Model 3 Performance for a Ford Ranger Tremor after owning it for two years. The Ranger is way more practical and gets decent gas mileage. Goodbye range anxiety, expensive tires that get damaged easily, constant software updates, annoying driver warnings, and phantom braking. Also I can easily find my buttons without having to take my eyes off the road for too long. I could go on. Ford, please take note!!

  8. hot toddy

    as long as he has billions in taxpayer dollars to throw around


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