Ford have announced they plan to split EVs and Legacy autos into separate units.
Ford is separating the operations but keeping them in-house.
The company expects the move will facilitate its growing electric vehicle business and
maximize profits.
This is probably a sensible move by Ford, as it's clearly not working for them right
now.
There are too many legacy people and systems in the old business.
We have seen this in legacy autos' EVs.
They can't let go of the past, they need their front grills, gear sticks, etc.
They just can't get their heads around the concept of a digital car, they struggle enough
with an electric car.
EVs is not Ford's game, it really isn't and never was.
It's just that EVs are what is killing Ford's business, and they are taking the attitude
of if you cant fight them join them.
But Ford seems to think they can possibly make EVs and profitably.
Like I said, its not their industry.
Do you have any idea how many companies branch into new industries only to completely fail.
Even the almighty Amazon failed in the smartphone industry.
The traditional legacy business will be called Ford Blue, and EV division will be called,
no other than the Model E. The Model E, which how can it not be construed as a total slap
in the face to Tesla.
Elon wanted to name the model 3 the model e, as obviously SEXY is spelt with an E, not
a 3.
Ford refused to let Tesla have the copyright.
So the entire EV division of Ford will be called the Model E. Is it me, or does that
sound more like a name for a car model, than a car company?
It looks like Ford Blue will fund Model E. It will just depend on how much longer Ford
Blue can even make profits.
Farley said Ford plans to build more than 2 million EVs in 2026, about one-third of
its annual global production, with EVs rising to 50% of its total volume by 2030.
Inferring from what Farley is saying here, he seems to think the ICE business will last
for sometime, still selling ICE vehicles even.
Well, maybe he does, maybe he doesn't, but he is saying it publicly.
No offense Jim, but your math is dreadful.
As you seem to think you will be selling 6 million vehicles in 2026.
Well Tesla probably aren't far off 10 million vehicles.
Now, what happens when one company takes some market share from another, well that other
company ends up producing less units.
Ford's and all legacy sales are going to exponentially drop, coincidentally at the same time Tesla's
exponentially increase.
Oh also the Chinese EVs, and Tesla will take out a lot of legacy's Chinese operations,
which for a lot of them, is their only profitable market left.
KILL TESLA PLAN This is all part of Ford's kill Tesla plan.
Remember when VW had this huge meeting to try and work out what to do about Tesla, which
doens't seem to have gone particularly far since.
Well I think that's what this, this is Ford's realization moment, of what do we do, how
do we survive.
I know someone working at Ford, and they sent me this.
Ford have spent a fortune on analysts to work out what the company is.
It couldn't be any more MBA if they tried.
We have Ford's identity of what Tesla is in 5 points, of course on no other than a power
point slide.
Because we know nothing says business like powerpoint.
Number one - a single minded mission statement, yes Tesla has world saving mission.
What would Ford's be, to sell more cars?
There is no heart and soul to arbitrarily think of something like saving the Manatees.
Number two - differentiated customer experience, yup, there is no car like a Tesla, and Ford
will never come close to what Tesla can do.
So how is Ford going to differentiate themselves.
Tesla is mainstream, Ford is mainstream, currently going head to head.
And I know who will win the pick up truck battle too.
They can't differentiate themselves to a low cost EV, as they can't profits with high costs
and rebates as it is.
Yea tough one there for you Ford.
Number three - community minded, there's a reason the community is so strong in Tesla,
and part of it is due to our animosity against companies literally like Ford.
Might be another tough one for Ford, aside from die hard F-150 fans somewhere in the
rust belt.
Number four - hype style marketing, yes, Tesla is great at that, and never advertises.
But it's a lot easier to hype a car that is quicker than a 3.5 million Bugatti for 3%
of the price.
Or blasting vehicles into out of space.
Or a heroic CEO doing what he can to end the world of people like Jim Farley running companies.
Number five - and this say it all, treat cars like technology.
They still don't get it, Tesla are treating technology like cars.
Technology first, car second.
Anyway, they are all obviously hot air marketing hyperbole to build confidence for the shareholders.
What should really be on there, is a way to get their costs down.
That's their main problem.
They have enough demand surprisingly.
It's profits they don't have, they should be working on logistics and manufacturing.
One of the biggest advantages potentially separating the two businesses, is that maybe
the Model E business can leapfrog the car dealer network.
If that's the case then that would likely add another $5,000 on to gross profit per
vehicle.
Of course the dealers will not be happy and likely sue.
So this probably isn't going to possible.
Maybe this new division will have no unions, that will save about another $5,000 per vehicle
too.
Yea, not sure that's likely either.
Oh well, if they can't get their costs down, then Ford is smoke.
This isn't something Ford can throw money at, it shows how clueless they are, upping
their investment from 25 billion magic beans, to 50 billion magic beans.
It all means nothing, until they prove they can score such a levels of capital.
But the point is that the EV industry is not cash constrained.
This is not a simple matter of throwing more money at the issue.
Elon said a long time ago, we are not cash constrained, and Tesla had a lot less cash
than $50 billion, yet they were not cash constrained.
Ford seems to think the issue with the EV industry, is they are cash constrained, not
enough money going into growing the EV industry.
Elon thinks it's battery constraints.
And yes I understand that Ford's money is going into more battery facilities.
But it's not going into mining more nickel.
There are bottle necks and delays that even $50 billion can't rectify.
And can we just talk about that $50 billion, this is 2/3 the entire market valuation of
Ford.
Where are they going to get this money?
I am really wondering.
And obviously I am not naive enough to know this just total hyperbole.
I genuinely want to know how people think they can raise $50 billion.
If any of you have any ideas I would love to know.
They can't float 2/3 the value of the company, the stock price would crash.
Interest rates are rising, and banks will be tightening on lending.
Especially when they look at Ford's sales.
Anyway, that's all my opinion, but others disagree, for example Cramer.
"I would take Farley over Musk in 2026" - who does he think he is?
Cramer is absolutely clueless about EVs and Tesla, you wouldn't believe.
Of course Ford is a good advertising customer from CNBC, oh right this is from CNBC, the
anti-Tesla pro legacy channel.
Cramer just gives Ford lots of credit, and none to Tesla.
Cramer says he thinks Farley's ambitions are remarkable, to aim for about 1/5 the number
of EVs Tesla will by 2026.
And the yardstick of EV ambition is Tesla, and Farley's ambitions don't come close to
Tesla.
Oh and Elon has a few other ambitions on the side of his EV business too.
Where is Elon's praise from Cramer or the media.
I mean it's no surprise Cramer knows very little about the industry, he follows so many
markets and stocks, its too much, he can't specialize or focus.
But what he said was either moronic or he just a big sell out.
He did a huge puff piece on Lucid too, very likely funded by Lucid to pump the stock.
I think Cramer might have gotten his own free Lucid Air though, possibly.
Just don't listen to Cramer, he's an entertainer nothing more, and he has no credibility to
speak out about Musk like that.
Farley will most likely not be running Ford any more by 2026 anyway.
If Ford can do something productive with the Model E division, then maybe it will be a
tidy enough business to sell to someone like LG to take over, you know, a company that
actually knows something about batteries, you know, when Ford is chapter 11.
Ford don't even seem to know what Tesla even is yet, and Tesla keeps evolving and progressing
so fast, Ford cant lock on to what they are, anyway.
And instead will continue waste vast amounts of capital chasing the impossible.