Ford expects to reach its EV production goal a year later than planned

Ford will take just a bit longer to reach the electric vehicle production goal it set for itself. As The Washington Post reports, Ford CEO Jim Farley now expects the automaker to be able to start producing 600,000 EV units per year sometime in 2024. The company was originally aiming to reach that production level in late 2023 with the help of lithium iron phosphate battery packs, which will help Ford cut manufacturing costs and reduce its dependence on nickel and other materials prone to shortage.

In the company's earnings report, (PDF) Farley explained that the "[t]he near-term pace of EV adoption will be a little slower than expected," but that he believes it's going to "benefit early movers like Ford." He added: "EV customers are brand loyal and we’re winning lots of them with our high-volume, first-generation products." The automaker's all-electric division did well in the second quarter of the year, with revenue from the first generation F-150 Lightning and the Mustang Mach-E vehicles increasing by 39 percent.

Ford was inundated with pre-orders for the F-150 Lightning after it was announced and had to temporarily stop taking reservations due to the demand. The company has recently slashed the vehicle's prices citing increased production capacity, though it could also be because it's looking to entice more customers who are also eyeing models by rivals like Tesla and General Motors.

Ford CFO John Lawler said "[t]he transition to EVs is happening, it just may take a little longer" and "it will be a little slower than the industry expected." The automaker was also aiming to manufacture 2 million EVs a year by 2026, but this delay affects that goal, as well. CNBC said Ford now doesn't know when it can reach that level of production, but Lawler assured that the company will still invest the same amount of money into its EV endeavors.