I’m now long, with swing trades on Ford (NYSE:F), General Motors (NYSE:GM), and NIO Inc. (NYSE:NIO). Ford surprised Wall St. and pulled a General Motors (GMs) by announcing a new investment focus into EVs; Wall St. is applauding. Ford nearly doubled its investment into electric vehicles (EVs) and autonomous vehicles (AVs). Ford stocks rose on Friday, with Wall Street overlooking Ford’s quarterly loss of nearly $3B & a sales miss; focusing on Ford’s plans to invest in EVs & AVs.
Late Thursday Ford reported wider 4th quarter losses & quarterly sales that were lower than Wall St.’s expectations, (https://www.marketwatch.com/story/ford-reports-quarterly-loss-tops-2-billion-increases-investment-in- electric-vehicles-11612474055), but unveiled a brighter 1st quarter outlook and said it would nearly double its investments in EVs and autonomous vehicles.
Emmanuel Rosner of Deutsche Bank said, “We were very encouraged” by these, in his note Friday. The company’s operating performance in the 2nd half of 2020 and the 2021 guidance “suggest to us the company may be turning a corner with its profitability and cash generation, benefiting from new and refreshed products, strong pricing and mix, and global cost reductions and efficiencies,” he said.
Ford’s plan to invest in EVs and self-driving cars rose to $29B, including $22B for EVs through 2025. That shows that CEO Jim Farley “is truly accelerating the company’s transformation towards an electrified and connected future.”
Read: Electric vehicles will make up a bigger slice of U.S. retail auto sales, Edmunds says (Electric vehicles will make up a bigger slice of U.S. retail auto sales, Edmunds says (msn.com))
Ford is taking “bolder and more decisive action on EVs (and AVs),” Joseph Spak at RBC Capital said in his note. Ford “is ‘pulling a GM’ and stepping up the investment. This is absolutely necessary.” Read: https://evbulletin.com/content/ford-launches-new-autonomous-vehicle-subsidiary-4b-investment
Ford’s valuation of about $45B has been eclipsed by Tesla Inc.’s (TSLA) $800B & GM’s (GM) $79B. Tesla (TSLA), of course, only makes EVs, and GM has pledged to do the same by 2035 and become a carbon-neutral company by 2040. (Ford plans $11 billion investment, 40 electrified vehicles by 2022 | Reuters)
One unifying concern with Ford, however, was news that the production of the new F-150 pickup truck, the #1 vehicle sold in the U.S. for decades running and one of the company’s crown jewels, was being hampered by a chip shortage. (Ford is cutting F-150 pickup production due to chip shortage – MarketWatch)The company temporarily has cut back on factory shifts.
Shares of Ford (F) have earned 40% in the past 12 months, compared with gains around 17% for the S&P 500 index.
Credits to: Claudia Assis; AskNewswires@dowjones.com
Look for more emphasis and information on EV stocks and related suppliers. Thank you, if you’ve gotten this far.
