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Ford Motor Co's revealed that its electric vehicle business has lost $3 billion before taxes during the past two years.
The carmaker expects to lose a similar amount this year as it heavily invests in new technology.
According to Ford officials, the electric vehicle unit will be profitable before taxes by late 2026, with an 8 percent pretax profit margin.
Since EV startups lose money while they invest in capability, develop knowledge, build sales volume, and gain market share, their Model e unit, representing EVs, should be viewed as a startup company within Ford, according to Chief Financial Officer John Lawler.
Model e is working on second- and third-generation electric vehicles and currently offers three EVs for sale in the U.S.: the Mustang Mach E SUV, the F-150 Lightning pickup, and an electric Transit commercial van.
The new corporate reporting system, Lawler said, is designed to give investors more transparency than the old system of reporting results by geographic regions.
