Ford is spring-loaded for the EV era

On Wednesday and week ahead of his Detroit rival General engines (NYSE: GM) has scheduled its second quarter results, Ford Motors (NYSE: F) raised its outlook for the year after a surprise second-quarter gain. Following the news, the stock rose about 4% in after-hours trading.

Q2 numbers

Due to the ongoing global shortage of semiconductor chips, which continues to disrupt production, revenue of $24.13 billion fell slightly short of expectations. Ford revealed it lost production of about 700,000 vehicles during the quarter. Net profit was $1.1 billion and pre-tax adjusted loss was $1.9 billion. Adjusted earnings were 13 cents per share, compared to the projected loss of 3 cents per share.

The EV front

Ford made a clear statement that it is “spring loaded” for growth in the second half of the year and beyond due to strong demand, including reservations, for newly launched and upcoming vehicles. Recent vehicle launches have ranged from the widely accepted electric Mustang Mach-E crossover and the redesigned F-150 to two new Bronco models, including the “Big Bronco” SUV. It has also revealed that since its debut in May, it has received more than 120,000 reservations for an all-electric version of its F-150 pickup truck, the Lightning, of which 75% or 90,000 are new to Ford. Ford also started receiving reservations for its new small pickup truck, the Maverick.

Electric Pickup Peers

Ford still has some catching up to do to make up for the reservations for Teslas (NASDAQ: TSLA) Cybertruck received more than 500,000 orders in September, less than a year after its debut. Deliveries of Ford’s Lightning are scheduled for spring 2022. The majestic Atlis XT electric pickup will debut in the booming pickup market a little earlier in 2022, while the luxurious Hercules’ Alpha is expected by the end of next year. , both of which will be powered by Worksport Ltd’s (OTC: WKSP) TerraVis revolutionary solar fusion for energy generation and storage.

Outlook

Due to demand for profitable new vehicles such as the Ford Bronco SUV that is expected to improve its performance, Ford increased its full-year pretax profit by approximately $3.5 billion, to a range between $9 billion and $10 billion. . From the first to the second half of the year, sales volume is expected to increase by approximately 30% as a result of improving market factors.

Despite the increase, the second half of the year is expected to be weaker than the first in operating profit due to raw material costs, lower Ford Credit revenues and other factors, such as higher warranty costs, which will weigh on results. Ford declined to provide the expected impact of the semiconductor chip shortage on full-year profits, but CEO Jim Farley described the situation as “fluent” despite an expected increase in supply in the second half of 2021.

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