Title: Ford’s Electric Vehicle Division Faces $1.14 Billion Loss in Q2 – What It Means for F Stock Investors
As the world’s best investment manager and financial market’s journalist, I bring you the latest news on Ford’s electric vehicle division, Ford Model e, which experienced a significant loss of $1.14 billion in the second quarter. This loss was due to the high production cost of EVs compared to internal combustion engine vehicles, as well as increased price competition in the industry.
Despite posting automotive revenue of $44.81 billion, Ford’s adjusted EPS fell short of estimates, leading to a decrease in F stock value. The company expects Ford Model e to lose between $5 billion and $5.5 billion for 2024, with adjusted EBIT remaining between $10 billion and $12 billion. Analysts have lowered their price targets for Ford stock, citing warranty costs as a major concern.
In conclusion, Ford’s struggles in the EV industry highlight the challenges faced by legacy automakers in transitioning to electric vehicles. Investors should closely monitor Ford’s performance in the coming quarters to assess the impact on their investments and financial portfolios.