Ford Motor Company (NYSE: F) which recently announced its quarterly earnings, missed its estimates. Following the announcement, its shares dropped more than they have in two years. Ford also announced that it was up to a slow start this year because of disruption in the supply chain.
Analysts had expected the company to earn revenues of about $37.7 billion. However, Ford earned $34.79 billion. John Lawler, the company’s Chief Financial Officer, stated that the company managed to navigate the global semiconductor shortage.
Ford’s market capitalization briefly shot to $100 billion after investors voice their approval of Jim Farley’s, the CEO, goal to switch to electric vehicles. However, the market capitalization has dropped to $80 billion in recent weeks.
Ford will direct more of its funds to electric vehicles
Furthermore, the company’s loss in China increased from $66 million last year to $150 million in the same quarter. Reports indicate that Ford could add $20 billion to its spending on eclectic vehicles in the next ten years.
Because of the semiconductor shortage, Ford allocated the available semiconductors to new vehicles in high demand, such as the Maverick and Bronco. The company also used its resources on profitable vehicles like the F-Series, customer orders, and transit. So far, Ford has recovered 10,000 orders for E-Transit.
Fortunately, Ford has already received demands for its pending electrical vehicles such as the F-150 Lightning and the E-Transit. The company hopes to make 600,000 electric vehicles in the following 22 months.
Ford will redesign the Mustang Mach-E
Ford also has plans to make its Mustang Mach-E by reengineering it. This move will mean that the company will make changes in the build and design of the vehicle. The company has stated that it will not be waiting for new models before reworking these vehicles. Moreover, Ford will use the expertise it gains from reworking the vehicle to design the F-150 Lightning.
For more than 40 years, Ford has been known for its truck the, F-150. Although this truck will likely remain the best in the market, the company faces competition from the 2022 Toyota Tundra.
Toyota Motor Corp ( NYSE: TM) has finally upgraded the truck after years. It now has new features and engines. However, the vehicle has still not beat the F-150.
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