Ford Ended The UAW Strike But It Did It At A High Cost Along With Having To Hit The Brakes On Its EV Plans
Portfolio Pulse from Upwallstreet
Ford Motor (NYSE:F) reported Q3 profit of $1.2 billion, up from a loss of $827 million YoY, with revenue increasing 11% to $44 billion. However, its EV unit lost $1.3 billion, double the loss from the previous year. Ford also reached an agreement with the UAW, which will cost the company $8.1 billion in new plant investments and other economic costs. This has led Ford to withdraw its 2023 guidance and postpone $12 billion in EV investment. The company's position is further weakened against Tesla (NASDAQ:TSLA), which also faces challenges from Chinese competitors BYD (OTC:BYDDY), Xpeng (NYSE:XPEV), Li Auto (NASDAQ:LI), and Nio (NYSE:NIO).
October 30, 2023 | 5:11 pm
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POSITIVE IMPACT
BYD reported record Q3 deliveries with sales rising by double digits and crossing the 2-million milestone this year.
BYD's record Q3 deliveries and strong sales figures are likely to positively impact the company's stock price in the short term.
CONFIDENCE 75
IMPORTANCE 75
RELEVANCE 50
POSITIVE IMPACT
Li Auto led on the startups front and, along with Nio, scored their highest quarterly sales.
Li Auto's strong Q3 performance is likely to positively impact the company's stock price in the short term.
CONFIDENCE 75
IMPORTANCE 75
RELEVANCE 50
POSITIVE IMPACT
Nio, along with Li Auto, scored their highest quarterly sales.
Nio's strong Q3 performance is likely to positively impact the company's stock price in the short term.
CONFIDENCE 75
IMPORTANCE 75
RELEVANCE 50
POSITIVE IMPACT
Xpeng posted its second highest quarter ever and announced plans to roll out its driver-assist technology in Europe by the end of 2024.
Xpeng's strong Q3 performance and plans for European expansion are likely to positively impact the company's stock price in the short term.
CONFIDENCE 75
IMPORTANCE 75
RELEVANCE 50
NEGATIVE IMPACT
Ford's Q3 profit is up YoY but its EV unit losses have doubled. The UAW agreement and its associated costs have led to the withdrawal of its 2023 guidance and the postponement of $12 billion in EV investment.
The increased losses in Ford's EV unit and the costs associated with the UAW agreement are likely to negatively impact the company's stock price in the short term.
CONFIDENCE 100
IMPORTANCE 100
RELEVANCE 100
NEGATIVE IMPACT
Tesla faces challenges from Chinese competitors BYD, Xpeng, Li Auto, and Nio, which have all reported strong sales figures.
The strong sales figures reported by Tesla's Chinese competitors are likely to put pressure on Tesla's stock price in the short term.
CONFIDENCE 75
IMPORTANCE 75
RELEVANCE 50