Is Ford a software/car manufacture?

[mburtsvt]

I have the strong feeling that wall street is beginning to value Ford as a tech/software company that makes cars vs. a car manufacture. I’ll let you know as soon as I make enough to pay off my Mach E.

Sponsored

 

[Skelton]

I don't know that I'd go that far.

Ford's stock is up because they've presented an achievable-looking strategy to migrate a significant portion of their vehicle sales to electric. It's become clear that's the future of the auto industry, and they're being "rewarded" for that.

The introduction of the electric F150 isn't a trivial thing. They sell as many F150s each year as the entire market in countries like Australia and Spain. Until now, I would suggest the ability of them to pivot those sales to electric was a potential weakness, but analysts are seeing it as safer than previously expected.

Just my drive-by thoughts.

 

[Mirak]

I bought 100 shares middle of last year after the crash, because I wanted xplan for the MME and figured I could maybe get a small bump in the process. Now I wish I’d bought 10,000 instead.

Of course, with hindsight I would have bought Dogecoin….

 

[RedStallion]

I have the strong feeling that wall street is beginning to value Ford as a tech/software company that makes cars vs. a car manufacture. I’ll let you know as soon as I make enough to pay off my Mach E.

That's kind of BS that Tesla nuts are believing in trying to justify the bubble type valuations.

 

[RonTCat]

I don't know that I'd go that far.

Ford's stock is up because they've presented an achievable-looking strategy to migrate a significant portion of their vehicle sales to electric. It's become clear that's the future of the auto industry, and they're being "rewarded" for that.

The introduction of the electric F150 isn't a trivial thing. They sell as many F150s each year as the entire market in countries like Australia and Spain. Until now, I would suggest the ability of them to pivot those sales to electric was a potential weakness, but analysts are seeing it as safer than previously expected.

Just my drive-by thoughts.

It's not the ability to "pivot to BEV", it's the desire. Any automaker that makes hybrids thinks BEVs are extremely easy to make. A BEV is a simple, decontented Hybrid with a bigger battery. Far less powertrain parts, and far simpler powertrain controls.

The risk is: Is there is enough market out there willing to buy BEV so a profit can be made? Looks like there is.

 

[SeattleMachE]

I don’t buy in at all to the notion of Ford or Tesla being software rather than automotive. Or for Tesla, that it’s a battery or solar or total energy provider vs automotive as I’ve seen some argue. There’s no need for mental gymnastics.

Ford’s stock is up because the EV portfolio and platforms unveiled so far and the billions of dollars being dedicated to their EV strategy give investors confidence Ford will remain competitive as the auto industry and regulatory environment moves to BEVs.

And it’s not clear how invested Ford will be re: software, beyond what all vehicles require. What about Fords announcement of their partnership with Google for Android Automotive?

 

[mburtsvt]

That's kind of BS that Tesla nuts are believing in trying to justify the bubble type valuations.

Agree...so the same thing would/could happen to Ford.

 

[RedStallion]

Agree...so the same thing would/could happen to Ford.

I don't think it will. Ford unfortunately has a long track record and usually making profit on selling cars allowing to make reasonable estimates. In order to trade at a fantasy price a company must become a cult selling some incredible BS instead of showing profits. A lie must be big enough to create a cult following.

 

[RonTCat]

Agree...so the same thing would/could happen to Ford.

LOL, I wish the bubble would burst so F could jump to a proper valuation like $30/share. It is the opposite of TSLA, artificially low.

 

[RonTCat]

A PE of 30 is reasonable, although Tesla is 630.

Sponsored