Electric vehicle segment, Model e, reported losses of around $1.3 billion in Q1 2024 or around $132,000 per vehicle sold
Ford maintained earnings guidance for 2024 and raised adjusted free cash flow outlook
Ford Pro contributed significantly to profits
Ford reported stronger-than-expected earnings and revenue for Q1 2024
Sales of work trucks and commercial vehicles drove profits
Ford Motor Co. reported stronger-than-expected earnings and revenue for the first quarter of 2024, driven by sales of work trucks and commercial vehicles. The company's adjusted earnings per share came in at 49 cents, surpassing the estimated 42 cents, while revenue reached $42.8 billion compared to the anticipated $40 billion.
The automaker's commercial unit, Ford Pro, has been a significant contributor to its profits due to business-to-business sales. However, Ford's electric vehicle segment faced losses during the quarter. The Model e unit reported a loss of approximately $1.3 billion in Q1 2024 or around $132,000 per vehicle sold.
Despite these losses, Ford maintained its earnings guidance for 2024 and slightly raised its adjusted free cash flow outlook. The company expects to generate adjusted free cash flow of $6.5 billion to $7.5 billion in 2024, up from the previous estimate of $6 billion to $7 billion.
Ford's strong financial performance comes as it continues its efforts to reposition itself in the rapidly evolving automotive market, focusing on electric vehicles and commercial sales. The company plans to launch several new EV models in the coming years, including an all-electric F-150 pickup truck.
Ford’s electric vehicle unit reported a loss of $1.3 billion in Q1 2023, equating to $132,000 per vehicle sold.
Revenue for Ford’s electric vehicle unit plunged about 84% to approximately $100 million.
Ford Model e reported a full-year loss of $4.7 billion on sales of 116,000 EVs in 2023.
Accuracy
Ford's electric vehicle unit reported a loss of $1.3 billion in Q1 2023, equating to $132,000 per vehicle sold.
Deception
(30%)
The article does not explicitly deceive the reader, but it does present selective reporting and omits important context. It highlights Ford's EV unit losses without mentioning that Ford is still profitable overall. The article also doesn't disclose that Ford has been investing heavily in its EV infrastructure and technology, which contributes to the high loss numbers for the EV unit.
Ford’s electric vehicle unit reported that losses soared in the first quarter to $1.3 billion, or $132,000 for each of the 10,000 vehicles it sold in the first three months of the year...
Fallacies
(85%)
The author makes an appeal to authority when stating that Ford is the only traditional automaker to break out results of its retail EV sales and that a price war among EVs has made profitability very difficult for Ford and other automakers. These statements do not provide any new information or evidence, but rather rely on the credibility of external sources.
] Ford is the only traditional automaker to break out results of its retail EV sales[.
] A price war among EVs for about a year and a half has made profitability very difficult[.
Ford beat Wall Street's earnings estimates for the first quarter
Sales of Ford Motor trucks and other commercial vehicles led the automaker’s earnings
Ford maintained its 2024 earnings guidance of adjusted EBIT between $10 billion and $12 billion
The company slightly lowered capital expenditure expectations and raised its adjusted free cash flow outlook for the year
Accuracy
Ford sold 10,000 electric vehicles in Q1 2023, down from the previous year.
Revenue for Ford’s electric vehicle unit plunged about 84% to approximately $100 million.
Ford expects its EV business to lost between $5 billion and $5.5 billion this year
Ford Model e reported a full-year loss of $4.7 billion on sales of 116,000 EVs in 2023
Deception
(100%)
None Found At Time Of
Publication
Fallacies
(95%)
The article contains some instances of inflammatory rhetoric and an appeal to authority, but no formal or blatant logical fallacies are present. The author describes Ford's earnings as 'solid' and mentions the company avoiding 'about 12 recalls', which could be seen as inflammatory. However, these statements do not directly involve any logical fallacies. Additionally, the author quotes Ford CEO Jim Farley stating that they have 'so much more to do', which is an appeal to authority as it implies that the reader should trust Farley's assessment of the situation.
]The automaker beat earnings estimates, but slightly missed on automotive revenue.[
Ford CEO Jim Farley said the company avoided 'about 12 recalls' thanks to additional quality checks during the stop-shipment.
Ford ended the first quarter with $25 billion in cash on hand and nearly $43 billion in liquidity.
Ford Pro segment is driving significant profit due to business-to-business sales.
Accuracy
Ford's electric vehicle segment, Model e, continues to be a financial drain as prices get more competitive.
Revenue for Ford's electric vehicle unit plunged about 84% to approximately $100 million.
Ford Model e reported a full-year loss of $4.7 billion on sales of 116,000 EVs in 2023.
Deception
(100%)
None Found At Time Of
Publication
Fallacies
(90%)
The article contains an appeal to authority when Ford CEO Jim Farley states that the company is dramatically reducing issues that will lead to fewer recalls and lower warranty costs due to new F-150 quality review testing. This statement implies that the test results are a reliable indicator of improved quality, but it does not provide any evidence or data to support this claim.
Ford CEO Jim Farley: 'We're really focusing on our launches.' Electric vehicle segment 'a huge drag''
new F-150 quality review testing shows the company is dramatically reducing issues that will lead to fewer recalls and lower warranty costs.
