Caution on Ford's EV Overhaul and Future Profitability

about 1 month ago

"Want to start with Ford Ticker. Their shares have been up as much as 1%. So we've been talking about Ford taking in nearly $20 billion in charges tied to that overhaul of its EV business. The majority of those charges are going to come in the fourth quarter. So what it includes, it's cancelling this planned electric F-Series trucks. It's shifting production toward gas and hybrid vehicles. It's repurposing an EV battery plant. And we know Ford's been struggling for years, Right, to make that unit profitable. The division lost 5.1 billion last year. The company expects losses could be worse this year. The changes make Ford's EV operations profitable by, get this, 2029."

The speaker details Ford's significant financial challenges associated with its EV division, highlighting nearly $20 billion in charges and ongoing losses, with profitability not expected until 2029. This commentary raises concerns about Ford's strategic direction and the viability of continued investment in its EV segment despite recent stock gains.

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