Ford Lost $132,000 For Each EV It "Sold" -- Aslso Suprise "Warranty Expenses" — July 25, 2024

Locator: 48230EVS. 

The EV narrative continues.

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Fool Me Once, Shame On You,
Fool Me Twice, Shame On Me

Link here. 

STELLANTIS 

Link here.

These are the folks who have told us they will introduce a sub-$30K EV.

FORD

From Morningstar:

InsideEVS: a must-read. Need to archive. EVs are tracked and archived here.

From CNN.

Ford’s electric vehicle unit reported that losses soared in the first quarter to $1.3 billion, or $132,000 for each of the 10,000 vehicles it sold in the first three months of the year, helping to drag down earnings for the company overall.

Ford, like most automakers, has announced plans to shift from traditional gas-powered vehicles to EVs in coming years. But it is the only traditional automaker to break out results of its retail EV sales. And the results it reported Wednesday show another sign of the profit pressures on the EV business at Ford and other automakers.

The EV unit, which Ford calls Model e, sold 10,000 vehicles in the quarter, down 20% from the number it sold a year earlier. And its revenue plunged 84% to about $100 million, which Ford attributed mostly to price cuts for EVs across the industry. That resulted in the $1.3 billion loss before interest and taxes (EBIT), and the massive per-vehicle loss in the Model e unit.

Comment: losing $132,000 / car at this point in the cycle / on the S-shaped curve is absolutely amazing.

And what's this "warranty surprise?" Are there two stories here? EVs and "warranties"? 

Apparently there are two stories.

Here's the "warranty surprise" story, link here.

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Posted Earlier

Ford: EVs

• InsideEVs, published last night, before earnings reported; link here.
• the EV narrative continues

Ford: top story at CNBC this morning (after the GDP story).

• F plunges after 2Q24 earnings miss
• F: down 13.9% (24-hour change); now at open, down 17%;
  
• down 1.89
• trading at $11.78
• Quality #1: unexpected warranty losses.
• I don't think I've heard more negative comments by Cramer on F first hour
• exception: one company last week, which I've now forgotten
• Cramer: "sometimes you just get had" -- with regard to his faith in Farley
• losing dollars on EVs:
• Farley says still a great report for Ford, and then asked on earnings call -- if great report, and F dropping, why isn't F announcing buybacks -- Farley's "cringe" answer -- we have better ways to deploy our capital (than buy our own stock)

This is the chart of the day for CNBC.

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• Reminder: I am inappropriately exuberant about the US economy and the US market, 
• I am also inappropriately exuberant about all things Apple.