Musk: Ford’s EV strategy is ‘smart’

Musk calls Ford’s electric vehicle strategy “smart” despite continuing reports of losses from its EVs. Ford’s financials show its electric vehicle business to be generating 40% negative margins for the first time since separating its EV (Model e) business unit. Tesla leads the industry in EV margins, selling its vehicles at a 15-25% gross margin and ~10% net operating margin. Musk:

Always tough with margins for new vehicle lines, especially when there are major technology shifts. I think Ford’s overall strategy with EVs is smart. The electric F-150 (Lightning) has high demand.

Always tough with margins for new vehicle lines, especially when there are major technology shifts.

I think Ford’s overall strategy with EVs is smart.

The electric F-150 (Lightning) has high demand.

— Elon Musk (@elonmusk) May 3, 2023