Ford Motor Company (F) shares tumbled as the carmaker warned that electric vehicle (EV) adoption is proving slower than anticipated, and hundreds of thousands of its popular F-150 trucks were recalled because of a potential problem with the emergency brake.
The company now expects to build EVs at a rate of about 600,000 per year sometime in 2024, a delay from its earlier estimate that the goal would be reached at the end of this year.
Ford reported that its Model e division, which makes EVs, lost $1.08 billion in the second quarter and $1.8 billion in the first half. The carmaker raised its estimate of the unit’s full-year loss to $4.5 billion. The company lost $3 billion on EVs last year.
John Lawler, Ford’s chief financial officer and interim chief supply chain officer, said that while the transition to EVs is happening, “it may take a little longer.”
Ford Recall of More Than 870,000 F-150s
Along with concerns about EVs, shares slumped on word Ford is recalling more than 870,000 F-150 pickups because the vehicle’s electronic parking brake could turn on suddenly. The company explained that a rear wiring bundle may chafe and create a short circuit, triggering the brake and potentially causing an accident.
Ford indicated it had received 918 warranty claims and three field reports of the chafing condition, with the brake activated in 299 of those, including 19 while the truck was being driven. The carmaker added it had no reports of accidents or injuries caused by the problem.
The recall covers certain 2021 through 2023 F-150s with single exhaust systems.
Shares of Ford fell over 3% in intraday trading on Friday, and were down about 14% since hitting a 10-month high earlier in the month.