Ford released its Q2 2024 earnings that reveal a mixed financial picture as the company navigates the challenging transition to electric vehicles (EVs) as its EV unit, Model e, lost $1.1 billion.

Despite Ford beating revenue expectations with $44.8 billion in automotive revenue, up 6% year-over-year, the company missed earnings projections. Ford reported earnings per share of $0.47, well below the projected $0.64, primarily due to mounting losses in its EV unit.

With the $1.1 billion loss in Q2 2024, it brings the total EV losses to $2.5 billion for the first half of 2024. Ford attributes these losses to lower production volumes and industry-wide pricing pressure. Furthermore, Ford still projects its EV unit to lose between $5 and $5.5 billion for 2024.

In comparison, Ford’s traditional internal combustion engine business, Ford Blue, also saw modest growth, with volume and revenue up 3% and 7%, respectively.

Despite these setbacks, Ford’s EV sales surged 61% year-over-year, with the company maintaining its position as the second-best-selling EV maker in the United States (U.S.).

Read More: Ford Gets Second Place in U.S. EV Market With Strong Q2 Sales

“The remaking of Ford is not without its growing pains,” Ford CEOJim Farley stated on a call with investors after the earnings results. “We look forward to proving our EV strategy out. That has become more realistic and sharpened by the tough environment.”

While the EV unit is facing challenges, Ford’s commercial and software unit, Ford Pro, continues to be a bright spot. Particularly, it saw revenue climb 9% to $17 billion, with a strong EBIT margin of 15.1%. Also, Ford Pro’s software subscriptions increased by 35%.

As Ford navigates this complex transition and challenges, it is clear that the path to profitability in the EV market remains difficult. With the company’s revised strategy of focusing on smaller EVs and potential partnerships, these new strategic moves will reflect its efforts to adapt to market realities and competition from other automakers.

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