Will the automaker be rewarded with a big increase in its stock price today? Almost certainly not. Ford, in particular, and the auto industry, as a whole, see as a difficult year with perhaps more chutes than ladders. Speaking of games, I play Ultimate Frisbee poorly but enthusiastically. Other than a little yoga, I did no real cross-training. Now I have to spend my off days stretching, lifting weights, icing ankles, and doing all sorts of exercise just to play the same amount of time I did before.
The auto industry is, in this way, a lot like me. Volvo is another automaker in the same boat. The company had a record year of sales in and, yet, the leadership is warning of a complex Audi continues to be a problem. Though maybe it can provide a solution for Porsche. In many ways, Ford had a strong Sales were up for the year, and the company had a big Q4.
The Blue Oval was expected to report earnings per share of about 33 cents and, instead, Ford hit 39 cents. So why did the earnings call not feel triumphant? Why is the market responding negatively this morning? Our full year outlook assumes headwinds related to market factors. For Ford, we expect this will be partially offset by top-line growth from upcoming launches. And we expect the majority of these savings to occur in the second half of the year. Losing money on every Mach-E and Lightning is going to suck, but Ford has the right idea going forward, which is basically: Cheaper, smaller battery EVs for some people.
On the U. These vehicles use case fits perfectly for EVs, daily commuters, well suited as a second vehicle in the household. They require smaller, much lower cost batteries.
These vehicles can be offered at lower prices to help adoption of EVs for the customers who really appreciate their lower operating costs. But for larger retail electric utilities, the economics are unresolvable. These customers have very demanding use cases for an electric vehicle. They tow, they go off road, they take long road trips.
