The Mustang Mach-E on display at the New York International Auto Show on March 28, 2024.
Danielle DeVries | CNBC
DETROIT – Ford Motors New vehicle sales in the United States rose 11.2% last month compared to May of last year, driven by strong growth in sales of all-electric and hybrid models.
The Detroit automaker on Tuesday reported a roughly 65% increase in sales of hybrid and all-electric vehicles. This compares with a 5.6% increase in sales of Ford's traditional vehicles with internal combustion engines.
Despite notable increases in hybrids and electric vehicles, sales in those segments totaled about 26,600 vehicles combined. That's just 14% of the automaker's more than 190,000 total sales last month.
The momentum in electric vehicle sales is a puzzle for investors. Ford wants to increase sales of electric vehicles to increase scale and help offset stricter fuel economy and emissions standards, but the company's Model E electric vehicle unit has reported massive losses.
Ford reported in April that the division lost $1.32 billion on 10,000 vehicles sold wholesale from January to March. While the unit also includes EV-related businesses, such as software, those losses equate to a loss of $132,000 for each vehicle the unit sells.
In May, Ford nearly doubled sales of its all-electric F-150 Lightning pickup trucks, compared to May 2023. Sales of the Mustang Mach-E EV also increased, up 46% year over year.
The increase in hybrid sales is part of Ford's plan to double down on the technology. The automaker said earlier this year that it would delay production of new all-electric vehicles to focus on offering hybrid options across its North American lineup by 2030.
Ford reported total year-to-date U.S. sales through May of 877,685 units, an increase of 5.6% compared to the same period in 2023. Sales have been led by an increase of approximately 10% in SUV sales and a 2.5% increase in trucks and vans. sales.
