Ford beats Q2 expectations

[RickLightning]

Results much better than Q1.

600,000 run rate moved to 2024 from 2023...

Lightning getting LFP in 2024.

https://s201.q4cdn.com/693218008/fi...d-Q2-2023-Corporate-Earnings-Presentation.pdf

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[Whammy Bar]

Interesting that all blue cruise improvements solely point to the Mach E.

 

[brucek2]

What would the benefit of an LFP battery be?

 

[vandy1981]

What would the benefit of an LFP battery be?

Pros: Cheaper, lower likelihood of fires, less reliant on blood minerals, better for demanding duty cycles, and can charge to 100% without degrading battery (i.e. can design with smaller buffers).

Cons: Worse cold-weather performance, less energy density, slower charging

LFP battery packs would be perfect fleet applications like parks departments, police forces, contractors, etc., due to their lower cost and better durability.

 

[Chado]

Great results but after hours still down more than close.
Looking fwd to the open

 

[metroshot]

Interesting that all blue cruise improvements solely point to the Mach E.

Yes, and if BC 1.3 rolls out to the Mach Es then the Lightning will be next in line.

I love my '23 MME BC 1.2.

 

[TaxmanHog]

https://fordauthority.com/2023/07/ford-evs-lost-32k-per-unit-in-q2-2023/

 

[shutterbug]

https://fordauthority.com/2023/07/ford-evs-lost-32k-per-unit-in-q2-2023/

The headline is super misleading and super lazy.
Ford EVs Lost $32K Per Unit In Q2 2023

 

[Maquis]

The headline is super misleading and super lazy.
Ford EVs Lost $32K Per Unit In Q2 2023

Care to expound on that?
Ford “E division” lost $4.5 billion using GAAP, so if they sold about 140,000 EVs, ……
I don’t know the reported sales volume.

 

[TheBigBezo]

Question, since this comes up a ton on places like reddit. Does Ford factor in things like building plants and adding new jobs at Rogue as Model E expenditures? Because then it's not as dire. Ford is spending money, a lot, to grow EVs in the brand. That's hard to do.

But if Ford has awful margins on these vehicles, maybe we're all the owners of new collectibles when they cut them.

 

[RickLightning]

Yes. Guess people on Reddit don't read financial statements. Many billions. Blue Oval City alone is $5.6B.

 

[shutterbug]

Care to expound on that?
Ford “E division” lost $4.5 billion using GAAP, so if they sold about 140,000 EVs, ……
I don’t know the reported sales volume.

It's simple. Lots of money that Ford has spent is not for any specific vehicle. It will be amortized across existing vehicles and future vehicles. It's a difference between unit cost total cost. Unless you believe that a Lightning Lariat really has $100,000 in parts and labor.

 

[Maquis]

It's simple. Lots of money that Ford has spent is not for any specific vehicle. It will be amortized across existing vehicles and future vehicles. It's a difference between unit cost total cost. Unless you believe that a Lightning Lariat really has $100,000 in parts and labor.

GAAP take amortized capitalization into account.

 

[shutterbug]

GAAP take amortized capitalization into account.

Capital costs are amortized over a number of years, not number of units sold. So if the annual capital expense is $1B and you sell 25,000 cars in year 1 and 100,000 in year 2, your cost per car goes from from $40,000 to $10,000 per car.

 

[Maquis]

Capital costs are amortized over a number of years, not number of units sold. So if the annual capital expense is $1B and you sell 25,000 cars in year 1 and 100,000 in year 2, your cost per car goes from from $40,000 to $10,000 per car.

Of course. That changes nothing.
I see what you’re saying. If Ford only sold 1 car, the loss would be $4.5 billion per car. But it still wouldn’t be wrong.

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