Ford Investors Have Been Disappointed

Doug McIntyre and Lee Jackson delve into Ford’s (NYSE: F) challenges in the EV market, emphasizing the substantial investments required and the difficulty in producing affordable, quality EVs. They discuss the issues surrounding EV range and charging infrastructure, and the impact of heavy EVs on roads. They also touch on the broader implications of government incentives and the risk of corporations doubling down on potentially flawed strategies. The conversation concludes with plans to revisit Ford’s performance after their upcoming sales and earnings reports.

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Transcript:

Well, there’s another aspect of this, and that is that you have to make these huge investments, as you know, into EVs.

They’ve said their investment would eventually total over $30 billion.

But what they haven’t been able to do is they haven’t been able to build that $25,000 really quality EV.

For some reason, you know, Musk, none of these people can get down there.

I think there’s a strong argument to be made until you price these cars well below the median price for a gas-powered car, people are just not going to buy them.

Yeah, and in addition to that, Doug, you’ve got to get 400, 500 mile range.

You know, it’s just ridiculous because there’s not enough charging stations and they’re placed in odd places around the country.

And I’ve read, you know, stories from people who said, okay, I drove from California to New York and here’s what a nightmare it was.

And I think you’re right.

They need longer range and they need a cheaper product.

This is just a little story on the side about this.

A company announced three days ago that they were going to install charging stations where it charges the battery 85%, which I guess in the EV world, 85% is pretty good.

Better than nothing.

Right.

But what they do is once it hits 85%, when you’re charging it, it cuts you off and if you stay for more than five minutes, there’s a penalty, a penalty of a dollar amount.

So this company’s idea is that they can start to move these EVs through super, super fast by cutting the charging time down because they don’t let you charge 100 percent and then having a financial penalty for you to leave.

And what do you think of that?

I think, you know, wow, somebody came up with that and said, wow, this is a great idea.

Well, you know, I mean, somebody thought they should have flown the Hindenburg into New Jersey, but they shouldn’t have.

I don’t know.

I mean, again, the whole premise of this was always bogus from the beginning, you know, and what it takes to just the sheer rare earth mining to get the batteries and all that.

And the toll that EVs take on the road, because they’re so heavy.

I mean, you know, how they’ll never use them in transport trucks because they can’t put as much cargo in.

And I don’t know that it got so far ahead of itself because of government, whether it be state or federal.

And I think they’re somewhat trapped now.

Yeah.

No, listen, once you’ve got this money in, you just keep doubling down because you can’t afford to admit that it was a bad idea.

This happens all the time in corporations.

So it’s just feed it with more money until it works.

And the problem is sometimes it doesn’t work.

Yeah.

And if it won’t work with the F-150, because that was so short-sighted, it was ridiculous, you know, because there’s a lot of urban people driving F-150s, you know, and there’s a lot of ranchers who really want an electric vehicle.

So, yeah, I mean, stick with the good products and make them better.

So we’ll come back to this when Ford puts its monthly numbers out, which it usually does the second or third day after the month ends.

Well, then we’ll see what the quarter was like as well.

Yeah, we’ll see the quarterly earnings as well.

So you and I will come back with unit sales and quarterly numbers.

We’ll do it.

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