The auto industry is in the midst of a great upheaval and Tesla is capturing market share.
Ford's ugly fourth quarter and full-year net loss
Ford motor company had a q4 2022 that was, how can I say this delicately, it was basically shameful. Everything seemed to go wrong for them. They had one of the worst quarters of growth in their history. It actually made Jim Farley embarrassed.
In the 4Q 2022 Ford missed all expectations
Revenue: $44.0 billion vs. $39.9 billion expected
Adjusted EPS: $0.51 vs. $0.62 expected
Adj. EBIT: $2.6 billion vs. $3.45 billion expected
Jim Farley was very honest about his assessment of Ford's earnings results.
"We should have done much better last year," Ford CEO Jim Farley said in a statement. "We left about $2 billion in profits on the table that were within our control, and we’re going to correct that with improved execution and performance."
Leaving $2B on the table is horrendous. I wonder if this is a trend for Ford.
Ford's Q3 earnings results are NOT what the media claims.
Ford had issued 65 recalls affecting more than 8.6 million vehicles in 2022.
"In simple terms, we need to improve quality and lower costs now,” the company’s chief financial officer, John Lawler, said in a conference call...In 2023, there is still going to be volatility on chips,” he said. “On the older chips used in the auto industry, there is still capacity constraint"
More chip shortages is the last thing Ford and other legacy auto needs in 2023.
Look at Kevin's Tweet thread that includes Jim Farley talking about Ford software.
Do you think Ford can achieve autonomous driving? Maybe Ford can use Tesla FSD
Ford should take lessons from Tesla - The best part is no part to increase margins.
"We believe a key focus of investors will be on Ford’s ability to improve its structural margins while also profitably transitioning towards secularly growing EV and ADAS [advanced driver assistance systems] related products," Goldman Sachs analyst Mark Delaney wrote in a new client note."
I still say, Ford's best bet is to work with Tesla and lease FSD technology.
Ford's Q4 miss: $1 billion in lost volume and 100,000 vehicles below production plan
CNBC's Phil LeBeau reports on Ford's dismal quarterly and yearly earnings results.
Source: CNBC
Ford didn't know a lot of things about their Mach E production. why not?
"We didn’t know that our wiring harness for Mach-E was 1.6 kilometers longer than it needed to be. We didn’t know it’s 70 pounds heavier and that that’s [cost an extra] $300 a battery,” he said on a call with investors Thursday. “We didn’t know that we underinvested in braking technology to save on the battery size."
Is it just me, or does it sound like Ford is a little lost when it comes to EVs.
Here's a take from Tom Nash, who provides great Tesla content on YouTube
Source: Tom Nash twitter account
First principles thinking is needed by Ford & other legacy auto, in order to break
problems down to the fundamentals, & bypass the high prices of the auto industry.
"Tesla is sitting at the top of the EV mountain that every other automaker is trying to climb,” said Dan Ives, tech analyst with Wedbush Securities. “It’s easier said than done.."
Dan Ives is correct, Tesla is at the top of the EV world planting its winning flag.
Farzad Mesbahi goes deeper into the new opportunities the changes in the IRA requirements provide for someone thinking about buying an electric car this year.
Source: Farzad Mesbahi Youtube Channel
Great news for EV consumers especially those looking to buy a Tesla Model Y
"We have long advocated for the IRA’s tax credits to be as widely accessible as possible, and crossover SUVs are the fastest growing segment in the market today,” Albert Gore, executive director of Zero Emissions Transportation Association, said in a statement. “In short, this announcement is great news for American drivers!"
I agree, but it's also very bad news for legacy auto who are grasping at EV straws!
Tesla vs Ford earnings comparison
Here is a Net Income comparison between Ford and Tesla. As you can see, Tesla Net Income is growing steadily higher, while Ford's is back down after the COVID spike it had in 2022. Ford now is back down to its normal negative level.
Source: James Stephenson Twitter account.
This chart is mod of one created by James Stephenson. His work is appreciated.
Mainstream Media helping Ford
Jim Farley hooked-up with Jimmy Fallon to promote Ford's EV autos, and Ford's, partnership with Red Bull Racing - Good example of MSM supporting Legacy Auto.
This puts Ford in a good light, but its fleeting, and wont help in the long run.
Why Tesla will win the EV race with ease
All the legacy auto manufacturers are in big, big trouble right now. The truth is none of them can make an EV that is profitable, and they wont be able to for several years to come. While legacy auto struggles to make sense of electric car manufacturing, Tesla is optimizing its manufacturing processes and is far, far ahead of all of them.
Listen to these 3 short clips to see why Tesla is winning big:
Source: Farzad Mesbahi Youtube Channel
How Tesla Would DOMINATE A 2023 Recession - Duration: 1:31
Source: Farzad Mesbahi Youtube Channel
Tesla Hints at Elon Musk's Master Plan Part 3 - Duration: 1:39
Source: Farzad Mesbahi Youtube Channel
This Competitive Edge Saves TESLA Billions - Duration: 2:16
The bottom line for Ford and legacy auto
Its real clear to me that Ford has to have a complete manufacturing overhaul if they ever want to be competitive in EV manufacturing. The rest of legacy needs to do the same. Ford Motor has clearly lost there way and are loosing a lot of ground to Tesla. Ford can do much better than their 4th quarter results, but they have to want it badly. Good luck Ford, your going to need it. Likewise for the rest of legacy auto.
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