The EV company stock price rose as its result was decent, given a challenging operating environment for the quarter. While there are some falls in earnings compared to last year, the decline has baked into the stock prices as China’s extensive lockdowns had restricted production, leading to fewer vehicles on sale.
The profit margin, which excludes the regulatory credits sale, stood at 26%, a fall from 30%. Nonetheless, the result is still better than Wall Street’s projection.
The company projects a full year as it expects a splendid 2H2022. Pika World continued to maintain exposure to the company.
🍄Ford: A leaner workforce, a better way✂️
The company plans to axe thousands of staff as it shifts its gear toward electric vehicle production. The workforce cut came from the bulk of the traditional ICE business. The amount will help to channel the needed resources to expand its EV goal.
Having restructured its business, it has now three main units: the EV biz, commercial biz and Ford Credit. Cutting costs in ICE car production is expected to lift profit margins and improve cash flow. This lays down Ford’s billions of dollars of EV investment in the coming year.
The spending will likely be on new plant establishment and battery capacity. This is to reach the goal of selling 2 million EVs by 2026.
Pika World continues to monitor the company for possible entry exposure.
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