Ford is lifting its guidance range for full-year 2023 consolidated adjusted EBIT to between $11 billion and $12 billion.  Likewise, the company is raising its expectations for full-year adjusted free cash flow to between $6.5 billion and $7 billion, with capital expenditures of between $8 billion and $9 billion.

However, the company is losing money on its EVs and expects its EV unit – Ford Model e – to lose $4.5 billion this year. Ford said the loss reflects the pricing environment,  disciplined investments in new products and capacity, and other costs.

Ford CEO Jim Farley said that Ford now expects to reach a 600,000-unit EV production run rate during 2024 and will maintain flexibility, balancing growth and profitability, on the way to attaining a two million run rate.

The Ford Pro (commercial vehicles) and Ford Blue (ICE vehicles) units are both projected to make around $8 billion each in 2023.

Farley also warned that EV adoption is slower than expected, but sees an upside to that as Ford invests in EV tech and models.

“The near-term pace of EV adoption will be a little slower than expected, which is going to benefit early movers  like Ford,” Farley said.  “EV customers are brand loyal and we’re winning lots of them with our high-volume, first-generation products; we’re making smart investments in capabilities and capacity around the world; and, while others are trying to catch up, we have clean-sheet, next-generation products in advanced development that will blow people away.”

Last week, citing increasing production capacity at the Rouge Electric Vehicle Center in Michigan, continued work on cost scaling and improving prices for EV battery raw materials, Ford announced lower suggested retail prices for the all-electric F-150 Lightning pickup truck.