The US electric vehicle market shows signs of stalling! Due to slower-than-expected acceptance of electric vehicles, Ford Motor announced a delay in its production target for electric vehicles.
On Thursday local time, Ford Motor stated that it is expected to reach an annual production of 600,000 electric vehicles by 2024, which is a delay compared to the previous target of reaching this level by the end of 2023. Additionally, the original goal of Ford Motor was to produce over 2 million electric vehicles annually by 2024, but it is now uncertain when this goal can be achieved.
After the stock market closed on Thursday, Ford Motor released its second-quarter earnings report. Although the overall profitability in the second quarter was stable, the performance of the electric vehicle sector was disappointing.
The report shows that Ford Motor's Model e division incurred an operating loss of $1.08 billion in the second quarter, with an operating profit margin of -58.9%.
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Currently, Ford Motor expects the Model e division to incur a loss of approximately $4.5 billion in 2023, due to the constantly changing pricing environment, new investments, and other costs.
The underperformance of Ford Motor's electric vehicle division may be a microcosm of the challenges faced by the entire electric vehicle industry.
Prior to the earnings report, former CEO of Ford Motor, Mark Fields, issued a resounding warning to the electric vehicle industry.
Fields told CNBC, &#34;For the electric vehicle industry, we are at a critical moment. We have a lot of capacity and a lot of new products.&#34;
He added that the inventory of electric vehicles is starting to exceed that of gasoline vehicles. However, &#34;the demand for electric vehicles is not keeping up with production.&#34;
Nevertheless, Ford Motor remains confident in the development of electric vehicles.
&#34;We are in the transition phase towards electric vehicles, it just may take longer,&#34; said Chief Financial Officer John Lawler after the announcement of second-quarter profits.
&#34;It will be slower than what the industry expected,&#34; he added.
Fields also believes that the market's shift towards electric vehicles will happen, but he does not think it will happen as quickly as predicted.
Lawler emphasized that Ford Motor's spending plans for electric vehicles and the profit target for its electric vehicle division have not changed. Ford Motor is still committed to achieving an operating profit margin of 8% in its electric vehicle business and has no plans to reduce capital expenditure on vehicles.
&#34;We will find a way to achieve the 8% target,&#34; Lawler said.
CEO Jim Farley stated in a statement that the gradual increase in electric vehicle production could be good news for Ford Motor.
Farley said, &#34;Although the adoption rate of electric vehicles may be slightly slower than expected, it is still a blessing for Ford Motor.&#34;
He pointed out that the first generation of F-150 Lightning and Mustang Mach-E electric vehicles have been successful, and Ford Motor is developing a brand new next-generation electric product.
Ford Motor stated that it has completed the capacity expansion of the electric SUV Mustang Mach-E, indicating that sales will start to rebound in the second half of this year.

Ford Motor announced that it is delaying its target of producing 600,000 electric vehicles per year from 2023 to 2024. The Model e division incurred a staggering operating loss of $1.08 billion in the second quarter.

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Ford Motor slows down electric vehicle production, warning that the acceptance in the United States is "slower than expected," and the electric vehicle industry is at a critical moment of "life or death".