November 1, 2024: Ford Motor Company has lost another $1.2 billion on EVs in the third quarter, according to a company statement on Monday, significantly impacting the carmaker’s net income which has dropped to $900 million amid a struggling EV market.

The announcement follows the decision, in August, to scrap plans to build three-row electric SUVs, and follows total losses in 2023 of $4.7 billion.

Ford had responded to challenges in the EV market by offering incentives such as free EV chargers and home installations to boost sales but the company’s net income was down $300 million from the third quarter of 2023, according to the company. The loss was largely due to a $1 billion charge related to EVs, the company said.

Ford’s earnings before interest and taxes (EBIT) for the full year is expected to be around $9 billion for Ford Pro, while Model e, the company’s EV division, is expected to have a loss of about $5 billion for the whole year, Ford said.

“We are in a strong position with Ford+ as our industry undergoes a sweeping transformation,” Ford president and CEO Jim Farley said. “We have made strategic decisions and taken the tough actions to create advantages for Ford versus the competition in key areas like Ford Pro, international operations, software and next-generation electric vehicles.

“Importantly, over time, we have significant financial upside as we bend the curve on cost and quality, a key focus of our team.”

Ford and other US automakers have faced fierce competition from China as it continues to dominate the EV market. Farley himself even admitted in October during a podcast interview that he owned a Xiaomi Speed Ultra 7 EV, despite his company receiving billions in taxpayer dollars to manufacture EVs in America.

The Biden-Harris administration has pushed for greater domestic manufacturing of EVs as part of its clean energy agenda. President Joe Biden previously set a goal of installing half a million public EV chargers across the US but the plan has been met with various delays.