Another Dreary Earnings Report for 'F'

[MJDore]

Reported another $1B loss on EVs in the quarter, and now expects to lose $5.5B (!!!!) on them for full year 2024. Warranty costs also weighing on the stock so prepare to get a fight for every little nit and nat. I'm in the middle of one, myself.

https://finance.yahoo.com/news/ford-q2-earnings-183231060.html

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[Heliian]

Investor tears sustain me.

Look what happened to Boeing when they forgot about their core mission and pissed away their company for investor profits.

 

[Roy2001]

This is with $7500 credit. Imagine without this next year.

People just have no interest, hard to find the right charge with enough speed, battery failure, miserable resale value, and the unpredictable repare cost, no need to mention the high insurance cost and extra $100-200 registratin fee. In addition to that, our (PG&E) electricity price is $0.5.

With or without $7500, this soundsnot sustainable to me.

 

[RickKeen]

Much of the "loss" was writing off engineering costs. They are still investing in next gen EVs.

 

[Tony Burgh]

Buy the dips.

 

[The Weatherman]

Buy the dips.

Yep! You beat to it. Not buying the dip, already started, giving that advice.

 

[MJDore]

Buying the dips in F is not where I put my investments but that's just me. They've lagged a simple S&P index fund for years.

 

[MJDore]

Much of the "loss" was writing off engineering costs. They are still investing in next gen EVs.

Oh, for sure. It's a cautionary tale, though. It's cash burn and, at some point, that will get old for the BOD quickly. It's still a great brand and generates strong free cash flow. Unlike, say, Rivian who will face solvency issues at some point.

 

[VAF84]

This is with $7500 credit. Imagine without this next year.

People just have no interest, hard to find the right charge with enough speed, battery failure, miserable resale value, and the unpredictable repare cost, no need to mention the high insurance cost and extra $100-200 registratin fee. In addition to that, our (PG&E) electricity price is $0.5.

With or without $7500, this soundsnot sustainable to me.

Holy cow, you pay $.5 for electricity? That's over 3x what we have here. I don't know if I'd even consider an EV if I was paying that much. LOL, it's actually cheaper for you to DC fast charge with a Tesla membership!

 

[Heliian]

$.5 for electricity?

I would be off grid at that price.

People just have no interest, hard to find the right charge with enough speed, battery failure, miserable resale value, and the unpredictable repare cost, no need to mention the high insurance cost and extra $100-200 registratin fee.

You might not have an interest but the sales numbers keep steadily increasing. Infrastructure is being built in more places for more people. The batteries are currently more reliable than Toyota tundra engines and they'll get better, repairs are fairly simple once you're trained and are comparable to other new vehicles. Resale value is a fallacy, the majority of people who buy cars aren't flipping them, they drive them until the wheels fall off. I drive an EV in Canada, it's cold, distances are long and the infrastructure is probably behind the USA but it still works great! My electricity is $. 14/kwh, gas here is $1.60/l. It costs me a 1/4 of what my gasser f150 2.7l did.
EVs are not for everyone, totally fine with that but some of the excuses are just lame. In your case, it doesn't make financial sense but we can't paint everyone with the same brush.

 

[PreservedSwine]

I’m in at 19.75. Today hurt. I’ll probably average down, and hope I live long enough for the dividend to make up the current 43.5% loss.

 

[Roy2001]

Holy cow, you pay $.5 for electricity? That's over 3x what we have here. I don't know if I'd even consider an EV if I was paying that much. LOL, it's actually cheaper for you to DC fast charge with a Tesla membership!

Our tier1 is 45 cents and we always charge at tier2 at 53 cents.

And yes Tesla SC (not open for other brand yet) 5 miles away is 35 cents and 16 cents after 8pm.

 

[Roy2001]

You might not have an interest but the sales numbers keep steadily increasing. Infrastructure is being built in more places for more people. The batteries are currently more reliable than Toyota tundra engines and they'll get better, repairs are fairly simple once you're trained and are comparable to other new vehicles. Resale value is a fallacy, the majority of people who buy cars aren't flipping them, they drive them until the wheels fall off. I drive an EV in Canada, it's cold, distances are long and the infrastructure is probably behind the USA but it still works great! My electricity is $. 14/kwh, gas here is $1.60/l. It costs me a 1/4 of what my gasser f150 2.7l did.
EVs are not for everyone, totally fine with that but some of the excuses are just lame. In your case, it doesn't make financial sense but we can't paint everyone with the same brush.

I am early adoptor of EVs so I am not really arguing...

EV sale needs 30-50% jump year over year. Without volume it is not sustainable, very simple.

 

[Scorpio3d]

Reported another $1B loss on EVs in the quarter, and now expects to lose $5.5B (!!!!) on them for full year 2024. Warranty costs also weighing on the stock so prepare to get a fight for every little nit and nat. I'm in the middle of one, myself.

https://finance.yahoo.com/news/ford-q2-earnings-183231060.html

I believe the $5.5 billion was announced at least last quarter if not the quarter before. They are probably spending a ton of money on R&D, trying to get the next GEN stuff ready-not to mention, they cannot really ramp their production when they are not selling as many as they thought they were going to a year or two ago !

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