Article: Ford is about to break out big EV losses for the first time

[luebri]

With the new segmenting of Ford business segments including their EV segment, This will be very interesting to see the raw financial numbers. It is no secret that the attempted transition of the traditional auto makers to EV is going to be a pricey and difficult one. This will be the first we get to see some actual data showing how rocky this road may be for Ford and potentially other auto makers.

https://www.cnbc.com/2023/03/22/ford-to-break-out-ev-business.html

"“The EV business could report much deeper losses than investors expect, which could make Ford’s target for 8% EV EBIT margin by 2026 particularly difficult to achieve,” Rosner said Monday in an investor note.

Aside from EV leader Tesla, no major automakers are expected to generate meaningful profits from electric vehicles for at least several years, as the industry works to increase EV output and manufacturing scale. That’s particularly true of EVs like Ford’s, as mass-market vehicles typically generate lower profits than luxury models."

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[COrocket]

I think Ford is gonna be in a world of hurt until they figure out how to manufacture EVs on the same scale as Tesla

 

[Grumpy2]

Remember Musk said he was nearly bankrupt in 2008, the year of the Roadster, and had to live off loans from friends. Ford has a HUGE plus over Tesla, and I guess it won't take over a decade.

 

[Heliian]

no major automakers are expected to generate meaningful profits from electric vehicles

Is this usa only?

Hyundai is generating meaningful profits AND are investing billions $ into production.

Competition is a good thing, investment in tech will continue and majors like Ford will have a clear path laid out for the future. Tesla has held out well being the only game in town for years but time will tell if they can adapt to a growing market.

 

[luebri]

Hyundai is generating meaningful profits

Profits or Revenue?

Do you have any data showing that Hyundai is turning healthy margins for their EV division?

For the record, Im a fan of Hyundai / Genesis / Kia and Im not saying you're wrong. I just havent seen any data supporting your statement.

 

[Heliian]

Profits or Revenue?

I would think that the outlook is good regardless. Here's a half decent breakdown: https://insideevs.com/news/631596/hyundai-plugin-car-sales-december2022/

Edit to add link:https://www.reuters.com/business/au...it-jumps-212-missing-expectations-2023-01-26/

 

[Pioneer74]

I would think that the outlook is good regardless. Here's a half decent breakdown: https://insideevs.com/news/631596/hyundai-plugin-car-sales-december2022/

I don't see anything in that article about profit or revenue.

 

[Heliian]

I don't see anything in that article about profit or revenue.

Oops, this is what I was looking at:
https://www.reuters.com/business/au...it-jumps-212-missing-expectations-2023-01-26/

 

[Bills R Electric]

I think Ford is gonna be in a world of hurt until they figure out how to manufacture EVs on the same scale as Tesla

IMO, people have to stop comparing Ford to Tesla.

Ford is in competition with General Motors. And Jeep. And Toyota. And Honda, etc. Not Tesla.
Tesla is on a different path.

So the question is can Ford build EVs in say 2026 that are better than, or very competitive with the EVs that GM, Jeep, Toyota, Honda etc build? if Ford can do that, they will have a good chance to continue along.

 

[Bills R Electric]

Is this usa only?

Hyundai is generating meaningful profits AND are investing billions $ into production.

Competition is a good thing, investment in tech will continue and majors like Ford will have a clear path laid out for the future. Tesla has held out well being the only game in town for years but time will tell if they can adapt to a growing market.

Hyundai is doing a nice job.

They will continue to add to their product line, and continue to improve their EVs.

I think Hyundai will capture a decent amount of the NON-Tesla EV buyers.

 

[TaxmanHog]

 

[Jim Lewis]

Ford is hosting a capital markets day on Monday to discuss its plans to reach a +8% eBit margin by 2026. Ford's capital markets day seeks to convince Wall Street of EV plans (cnbc.com)

 

[Tony Burgh]

Ford is hosting a capital markets day on Monday to discuss its plans to reach a +8% eBit margin by 2026. Ford's capital markets day seeks to convince Wall Street of EV plans (cnbc.com)

I think the ladies said “Don’t go chasing waterfalls”.

 

[Jim Lewis]

I think the ladies said “Don’t go chasing waterfalls”.

For folks like me who are not up on much music past the '80's: The Meaning of TLC's "Waterfalls" - Extra Chill

But no profit, no business, no ability to raise capital, etc., .... (unless you're Amazon in its nascent days! ).

 

[Tony Burgh]

For folks like me who are not up on much music past the '80's: The Meaning of TLC's "Waterfalls" - Extra Chill

But no profit, no business, no ability to raise capital, etc., .... (unless you're Amazon in its nascent days! ).

In the 2000’s, our sales guys and accountant were in love with waterfall diagrams. The engineers all found them gimmicky.

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