Key Points
Ford (NYSE: F) announced a $5 billion investment in a new EV assembly system with a 2027 rollout, but the market responded negatively, suggesting investors lack confidence in Ford’s long-term EV strategy.
Despite strong performance in its traditional gas-powered vehicle business, including continued dominance with the F-150, Ford’s repeated EV pivots are perceived as costly and poorly timed.
Analysts argue that Ford could unlock significant shareholder value by abandoning EV development and doubling down on profitable gas-powered vehicles to stabilize earnings and regain investor trust.
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Transcript:
[00:00:04] Doug McIntyre: Yesterday, Ford down in Louisville where they’ve got a plant. Right. Announced that they were gonna make a $5 billion investment to, in a completely new assembly line system.
[00:00:16] Doug McIntyre: They call it the new Model T. They’re comparing it to what Henry Ford, the original Henry Ford did to automate the automotive industry and Right. Some, somehow this is the next generation day and Wow. I wanna say wow. Their first car from this will be out in 2027. Oh wow. The Chinese car companies will own the universe then.
[00:00:40] Doug McIntyre: Please, please, you people at Ford, Mr. Farley, just take the white flag. Wave it and, sell everything you’ve got to the Chinese 2027, one model. It’s gonna be a four door EV. And then they said, well, and this is gonna preserve, I think 2000 jobs. And when you say you’re gonna preserve jobs, it means otherwise it probably means they were gonna get fired.
[00:01:08] Doug McIntyre: So what happens when they announce this? The stock drops, but not only does it drop, it drops on light volume. Yeah. So what do you think, what do you think investors thought of this when they announced it and they said that this was basically it. You remember when they said. Three, four years ago they were putting $30 billion into EVs and
[00:01:31] Doug McIntyre: And the current Ford, Bill Ford said that this was the most important event and his, lifetime at the company was the launch of the F-150 Lightning. I think they sold about 3000 lightnings. Yeah, that’s about it. So anybody who heard the Ford announcement and is slightly skeptical. I would say that the stock market was highly skeptical.
[00:01:56] Doug McIntyre: Yeah. Which means? Which means that almost no one believed it at all. Look, I gotta tell you, the Ford people talk such a good game. They stand up in front of the crowd and they, tell you how great it’s gonna be and it’s just, they’re very good at it, I think. I think there’s an Oscar. Oscar in their future
[00:02:18] Lee Jackson: Well, and the thing that’s so ludicrous if you’re a a, Ford shareholder is that on their basic gas powered engine business, they are doing very well. Oh my God. They’re selling a ton of the, highest selling vehicle for the last 50 years. They’re starting a ton of them, but they, it, it’s always one step forward, two backwards for them because they’re going down the EV road again and it’s gonna be expensive. And they’re gonna be late.
[00:02:47] Doug McIntyre: Okay. I hope that Mr. Ford and Mr. Farley hear this segment because I’m gonna give you a piece of advice. Uh oh. Your stock is 11. It’s stuck in a range someplace between like, 9.50 and 12.
[00:03:01] Doug McIntyre: And it have been range bound since I was born. If you want your stock at 20, make this announcement. We’re not going to build any EVs. We’re gonna be the world’s leader in gas powered cars and trucks. We’re gonna triple down on the F-150s. We’re gonna turn ’em into little tiny sedans, and the Bronco seems to be selling one the Bronco.
[00:03:25] Doug McIntyre: 50. That flavors of Broncos, they got outta the sedan business for who knows what reason. Gas sedans to compete with Honda. Okay, and Toyota, get back into that business. You wanna see that stock soar. You say, guess what? We know nothing about EVs. Eventually the Chinese will put us out of business. In the meantime, we’re going to rule the gas powered car and truck business.
[00:03:52] Doug McIntyre: Invest in us, buy a short term, buy us. Just invest in us because you think in the next two years we’re gonna make a fortune by doing two things, making cars that don’t break. So we don’t have huge high warranty costs, number one. Number two, tell everybody that you’re leaving EVs. Don’t sell your EV section to somebody else.
[00:04:15] Doug McIntyre: Just close it, shutter it. Get out of the EV business permanently. Let yourself be put out of business in sunset down the road. In the meantime, just take the cash in and eat it. If you start to lose market share to EV companies, just make yourself smaller and smaller and smaller, but make money every year.
[00:04:34] Doug McIntyre: Don’t be stupid. Okay.
[00:04:37] Lee Jackson: Well they would make money every year if they would stop. They make it,
[00:04:40] Doug McIntyre: Are you kidding me? If they fix the warranty problem and they get out of the EV industry, that’s a $20. It’s a $20
[00:04:46] Lee Jackson: stock tomorrow. Yep. Yep. I agree. Alright, well, We’ll see what the end result of this is, and it’s probably, death and destruction, but we’ll keep an eye on it.
[00:04:57] Doug McIntyre: Do me a favor. If you work at Ford, take this and forward it to Mr. Ford and Mr. Farley and ask him just to watch this segment. I’m sure they’ll do that. I’m sure they’ll, be watching that. I’m sure I’ll get, I’m sure I’ll get a call. I bet.
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