Western automakers, and especially US auto manufacturers, have struggled to adapt to the EV revolution initially brought globally by Tesla, then by Chinese brands, and then by the rest of the industry. One reason has been a question of branding, as the legacy automotive brands have a long-established expertise and image linked to combustion engines.
Another one has been the slow adoption of new technologies, and trying to shoehorn EV technology into older designs. As a result, EVs from these brands have been relatively unpopular among consumers, leading to large financial losses.
This is the case for Ford, which recently registered a $19.5B loss to its book value, as it wrote down the majority of its investment in EVs, a loss as large as 40% of the whole company’s book value.
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