Ford tapped the brakes on EVs and bet on hybrids. It's paying off.

• Ford is reaping the benefits of its bet on hybrids.

• The automaker recorded surging hybrid sales in the last quarter, even as demand for EVs slowed.

• Ford slowed its EV push, postponing investment into manufacturing facilities and delaying new models.

Ford's bet on hybrids looks like it's paying off.

The Detroit automaker announced in its earnings on Wednesday that hybrid sales rose 36% in the first quarter of 2024, with CEO Jim Farley telling investors that the company is now the third largest seller of hybrids in the US behind Toyota and Honda.

By comparison, the company's pure EV business has struggled.

Losses at Ford Model e, the company's dedicated electric vehicle unit, grew to $1.3 billion in the first three months of 2024 as demand for electric vehicles slowed and manufacturers engaged in a brutal price war.

"We made a lot of capacity decisions several years ago on hybrids, and I'm very thankful we did," said Farley in the company's Q1 earnings call.

Unlike rivals such as General Motors and Volkswagen, Ford continued to invest in its hybrid lineup even as it built up its EV business over the past few years — and now that EV demand is slowing partly because of the lack of affordable models, it looks like that strategy is paying off.

Hybrids, once dismissed by EV enthusiasts like Elon Musk as a "phase," are experiencing a boom in popularity as US customers seek cheaper options.

Data from online autos marketplace Edmunds reported by The New York Times found that, on average, buyers were paying $42,500 for hybrids in November 2023 compared with $60,500 for electric vehicles.