Mach E effect on Ford stock price?

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Tesla eliminated the low end models. The “$35k Tesla” no longer exists. Cheapest Tesla you can buy is $42k. Tesla sells mostly high end models of its already only high end models offered for sale.
Well, yes but their cars are cheaper now then they were with the $7,500 tax credit. Each time it went down, they lowered the price of the Car. Elon has even stated that their vehicles are too expensive. It'll be good business for them though if they sell 800,000 a year of the 3/Y.
 

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Their after sales support is just awful.
Fair to say that is the easiest thing to fix and fair to say the only thing Tesla needs to fix. Remember when all US car companies couldn’t compare to Japanese imports for quality and service? They fixed it.

Even that is not costing Tesla at this point because their product is so superior. Model Y is $6k cheaper, 1 second faster and has 45 miles more range that the Mach-E Premium I ordered.
 
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Fair to say that is the easiest thing to fix and fair to say the only thing Tesla needs to fix. Remember when all US car companies couldn’t compare to Japanese imports for quality and service? They fixed it.

Even that is not costing Tesla at this point because their product is so superior. Model Y is $6k cheaper, 1 second faster and has 45 miles more range that the Mach-E Premium I ordered.
No, Tesla can't fix it in the short term not using the direct sales approach. It is impossible, they actually just recently eliminated calling the service center direct for support. So they are going in the opposite direction. It's not as easy as you might would think, if it was easy it would be fixed by now. They need to do a hybrid and adopt a dealership network to help their service and delivery side of the business.

First Tesla would have to accept the fact that the direct to consumer approach does not work well. Look at Apple for example. In order to get an apple worked on, you have to drive all the way to your nearest apple store or find a repair shop. For a lot of people, that's 2+ hours away. Many people won't buy a car for that reason alone. Mobile service is not available in my area either and even that is severely limited. Most people shop off convenience.

Model Y is $1,500 more expensive when you factor in the tax credit (who's to say ford won't decrease the price when it goes away as well?). I think it'll be interesting to see how the Mach E compares to my Model 3, I'm ready to drive one. EPA numbers are still not released, they said they will meet those numbers minimum. We shall see.
 
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Even that is not costing Tesla at this point because their product is so superior.
I would certainly not say their product is superior. Lets wait to see how the Mach E performs, if it does worse on EPA and their Sync 4 is a disaster then I will agree with you. If their Copilot360 2.0 with hands off isn't good, I will agree with you.

Until then, It's pretty damn close on paper and I wouldn't bat an eye as long as Ford's vehicle delivers on everything.

It is also subjective to the owner. Some would prefer the better build and interior quality of the Mach E over a Tesla. Or the looks, so just because raw specs are better doesn't mean people will buy it for that reason alone. I'm willing to sacrifice in range for better service and support.
 
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Tesla can't fix it in the short term not using the direct sales approach.
Fixing service just requires hiring people to answer the phone and giving customers answers. Easier to fix than engineering problems. Easier to fix than manufacturing problems. Easier to fix than sales problems.
 

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Until then, It's pretty damn close on paper
I would say 10% less cost, 20% more accel and 15% more range is pretty damn big advantage for Tesla.
 
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I would say 10% less cost, 20% more accel and 15% more range is pretty damn big advantage for Tesla.
On the cost side, that is ignoring tax credit. We don't know the details on the other numbers until EPA estimates and speeds come out.
 

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On the cost side, that is ignoring tax credit.
Of course, not everyone qualifies for the tax credit which is why it should be a rebate not a tax credit so more working people can buy EV’s...but another story.

If MachE is a success it will certainly help Ford’s stock price but it will be sales and profits of F150’s, Escapes, Explorers etc. that will be the determinants of Ford’s stock prices and profitability. 50,000 MachE vs. 1,500,000 F150’s.

MachE can definitely have some juice for the stock if it is very successful with no issues, showing Ford can build the cars of the future. Even though it small sales and profit wise, ability to do it shows hope for future.
 

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Forward guidance for 2020 is weak. Don't expect anything great in the way of capital appreciation for the next year or so.

Still, long term it will gain and it is earning 7% dividend at current market price while you wait.

The Mach-e volume will be limited by battery availability. I assume that will change eventually. It has the Halo car aspect for now and will demonstrate what Ford can do.

The F150 EV and variants is the really important one for Ford. An EV can reduce operating costs.

Disclosure: I own Ford stock.
Since most of the major vehicle redesigns are launching end of 2020 or early 2021, that's what I would have expected. Anyone buying this stock now must be looking well beyond 1-2 years if you're in it for long term value. They are revamping most of their vehicles and shortening product life cycles, investing heavily in modular platforms and going all in on SUVs/trucks and growth segments (EVs) but this isn't going to happen overnight and it leaves them particularly vulnerable to gas prices and shifting customer preferences.
 

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If MachE is a success it will certainly help Ford’s stock price but it will be sales and profits of F150’s, Escapes, Explorers etc. that will be the determinants of Ford’s stock prices and profitability. 50,000 MachE vs. 1,500,000 F150’s.
And the new Bronco is expected to sell 200k units/yr. So the new Bronco and F-150 will certainly move Ford's stock price more than Mach-E sales. Good thing for Ford shareholders is that both of them will start production this year.

Also good for shareholders it the fact that the Mach-E will be profitable from day one, even if it does only sell 50k units for the first production year.
 

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Also good for shareholders it the fact that the Mach-E will be profitable from day one, even if it does only sell 50k units for the first production year.
Have to wonder about that. MachE is a complex and expensive car and it's hard to believe Ford could make a profit on just 50,000.

Ford selling all 50,000 would be the sign of success that would help Ford's stock price. Bottom line, selling all 50,000 might cover the development and mfg costs.
 
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Have to wonder about that. MachE is a complex and expensive car and it's hard to believe Ford could make a profit on just 50,000.

Ford selling all 50,000 would be the sign of success that would help Ford's stock price. Bottom line, selling all 50,000 might cover the development and mfg costs.
Ford is making a profit day 1 according to the CEO.
 

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Ford is making a profit day 1 according to the CEO.
I took that as a bit of spin. In a narrow sense it may be true. Meaning, the price they're selling each one for may exceed the cost of the raw materials and labor to build it. But it'll take em a long time and a lot of sales to recover all they money they poured into the R&D and the expansion into electrification (which will include more than just the Mach-e).

So it depends on how you count it. They need to put a good spin on it for investors.
 

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Fair to say that is the easiest thing to fix and fair to say the only thing Tesla needs to fix. Remember when all US car companies couldn’t compare to Japanese imports for quality and service? They fixed it.

Even that is not costing Tesla at this point because their product is so superior. Model Y is $6k cheaper, 1 second faster and has 45 miles more range that the Mach-E Premium I ordered.
6k cheaper? I have never configured such an equal comparison between the Y and Mach E. Can to elaborate further? 1 second faster based upon real world data or what the manufacture published? 45 miles of range in the real world or what the epa stated for Tesla and what Ford has estimated?
 
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