Ford's Q2 adjusted profit falls on EV hit

Ford Motor reported a dip in its second-quarter adjusted profit on Wednesday, as the automaker battles lower profitability in its electric vehicle business.

Shares of the company were down about 8% in extended trade.

Legacy automakers have had to scale down their EV ambitions amid easing demand, a shift to hybrids and stiff competition from Tesla and Chinese EV makers in global markets.

They are also shelling out more to design and build their EV vehicles than what they are able to sell them.

Ford has delayed the launch of its new three-row electric crossover and outlined plans to use the Canadian plant it earmarked to build those vehicles and focus on larger, gasoline-powered versions of its flagship F-Series trucks.

Peer General Motors reported second-quarter profit and revenue on Tuesday that beat Wall Street’s expectations, buoyed by strong pricing and demand for gas-powered trucks. Tesla on Tuesday also reported lower earnings.

Ford earned an adjusted profit of 47 cents per share, compared with 72 cents per share a year earlier.

Analysts on average had expected the company to report 68 cents per share, according to LSEG data.