U.S. Stock Market Update | Electric vehicle sector continues to lose money, Ford Motor drops more than 17%

On Thursday, Ford Motor's stock price fell sharply, dropping over 17% to $11.335 as of the time of publication. The company's second-quarter revenue was $47.8 billion, a year-on-year increase of 6.2%; adjusted earnings before interest and taxes (EBIT) were $2.8 billion, a year-on-year decrease of 26.3%, with analysts expecting a year-on-year decrease of 1.8% to $3.73 billion; adjusted earnings per share (EPS) were $0.47, a year-on-year decrease of 34.7%. The company's electric vehicle business continued to operate at a loss. Revenue for the electric vehicle division, Ford Model e, fell by 37% year-on-year to $1.1 billion. "Due to ongoing pricing pressures and investments in the next generation of electric vehicles, it is expected that the Ford Model e division will incur losses of $5 to $5.5 billion in 2024." Ford Motor stated that the electric vehicle business incurred an EBIT loss of $1.1 billion in the second quarter, attributed to continued pricing pressures across the industry and lower wholesale prices. Just two days prior, Ford Motor admitted that its previously set goals for electric vehicle development in Europe were too aggressive and that it would abandon the goal of full electrification of its European models by 2030