Ford Is Building the Wrong Car

"Ford Motor Co. ( NYSE: F) CEO Jim Farley stated that the dawn of a large and successful electric vehicle (EV) market in the United States will be delayed well into the future. His comment is that the elimination of the EV tax credit could cut EV sales by half over the short term. Specifically, he said the EV market will be "way smaller than we thought." Yet, in August, he announced Ford's Universal EV Platform. Its first vehicle will be a mid-sized electric truck with a 2027 launch date. It could be released into a market where EV sales continue to be weak."

"Ford has invested tens of billions of dollars into its EV business. It says it will lose another $5 billion this year. And it also says it has already invested $5 billion in its new EV platform and will invest another $2 billion to "transform the Louisville Assembly Plant, securing 2,200 jobs while working together with the UAW." Notably, Ford has only announced the one vehicle that will come off the new assembly line in 2027."

"If Ford wants to be serious about the fact that the future of the car industry lies with EVs, it needs to release several models from its new assembly line in 2027. One is not enough. Ford cannot continue to whipsaw investors as it teeters between a future of gasoline-powered cars and an EV world."

The dawn of a large and successful U.S. electric vehicle market will be delayed well into the future. Elimination of the EV tax credit could cut EV sales by half in the short term. Ford announced a Universal EV Platform, with the first vehicle a mid-sized electric truck slated for a 2027 launch. Ford has invested tens of billions in its EV business and expects another $5 billion loss this year. The company invested $5 billion in the new platform and plans $2 billion to transform the Louisville Assembly Plant, securing 2,200 UAW jobs. Only one vehicle has been announced for the new assembly line. EV sales through the first three quarters totaled 69,600, up 2.8% year-over-year, while internal combustion vehicle sales rose 5.7% to 1,416,610. Management faces pressure to release multiple models in 2027 and clarify the strategic commitment between gasoline and EV vehicles.

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