Gamingdeputy News on April 25: Although Ford reported a decline in electric vehicle revenue on Wednesday, its senior management still showed optimism during the earnings call.
Ford CEO Jim Farley confirmed,The market needs affordable electric vehicles, and Ford will offer them in its next generation. He also promised that the models will be profitable and that Ford will increase production to meet demand for its popular hybrid models such as the F-150 PowerBoost and Maverick Hybrid.
Advertisement
It was a promising earnings call for Ford, which has struggled to attract investors. Ford's stock price is one of the lowest globally compared to its earnings, a sign of a lack of confidence among investors in Ford's main business. However, Ford has a huge fleet business, a strong hybrid model portfolio that is in short supply, and the Mustang Mach-E electric car is the second-best-selling electric SUV in the United States after the Tesla Model Y.
Ford has had to adjust its expectations for EV adoption. However, the company now believes it is on the right track, with a number of powerful hybrid models and the popular Mustang Mach-E. The difficulty is not only selling electric cars but also doing so profitably.
Since Ford cut the price of the Mach-E by 17%, its sales have grown rapidly. Farley said affordability is top of mind for consumers, as evidenced by Mach-E sales growth, and he promised the next generation of Ford electric vehicles will be both affordable and profitable. Gamingdeputy notes that this shift comes at a time when Tesla is said to have lost interest in the rumored cheap electric car “Model 2”, and the company may have abandoned the project in favor of Musk's promised autonomous driving. Taxi project.
Ford said models such as the Maverick, F-150, F-250 and Ranger are all selling well, and the company is on track to build a profitable electric vehicle business, while its gasoline-powered vehicle business will continue to generate cash flow. To stay relevant and lower emissions, Farley said Ford will introduce hybrid models in every segment. The key is to control prices as consumers face higher interest rates that make loans for expensive cars and trucks much more expensive.
Advertisement
All in all, Ford aims to have a strategic advantage in affordable electric vehicles. General Motors is trying to achieve the same goal with the Chevrolet Equinox EV, and Tesla also has the Model Y. Who will win the race to bring long-range, affordable electric vehicles to younger consumers and less affluent buyers is anyone’s guess, but it’s certainly a good thing that more companies are joining the market.
“What’s really exciting for us is we see a gap in the market,” Farley said. “We believe we can be profitable in the $25,000 or $30,000 price range.”