Ford Just Lost Billions of Dollars on EVs. Here’s Why That’s Good News.

Ford Motor Company (NYSE: F) just released its fourth-quarter sales data for investors to chew on before the company releases its fourth-quarter and full-year 2023 results later this month. The good news is that the company posted a record quarter for electric vehicle (EV) sales, but the bad news is that means billions of losses in the near term.

Here’s why it’s still a positive development for Ford investors.

Devil in the details

Ford’s 2023 U.S. sales jumped 7.1% to nearly 2 million vehicles, led by strength in its F-Series full-size trucks, commercial vehicles, and a record year with electric vehicles.

Let’s start with the company’s most important product, the truck that hauls profits for the folks at the Blue Oval. Ford’s F-Series was America’s best-selling truck for the 47th consecutive year and the best-selling vehicle for the 42nd consecutive year. In fairness, it’s a title Ford will likely continue to hold, as its prime competitor, General Motors, arguably splits some of its sales between two brands of trucks, the Chevrolet Silverado and the GMC Sierra.

What’s encouraging for investors is that the F-150 Lightning was the No. 1-selling electric truck and the F-150 Hybrid the No. 1-selling full-size hybrid truck for the full year. It’s important for investors to see that Ford’s strength in full-size gasoline-powered trucks can transition to EVs, because full-size trucks are a critical component for a fatter bottom line.

Speaking of EVs…

That’s a nice transition to another critical component of Ford’s fourth-quarter and full-year sales: electric vehicles. Ford’s EVs posted record fourth-quarter sales to drive a record full year. More specifically, the Detroit icon sold nearly 26,000 EVs during the fourth quarter, up 24% compared to the third quarter, to help drive an 18% gain for the full year.

Much of Ford’s EV sales gain was driven by the previously mentioned F-150 Lightning, which recorded a 74% sales increase compared to the prior year’s fourth quarter, and a…