Ford is running from Tesla and appears to be ceding the entire EU market. Dropping cars is kind of hilarious. Tesla show that out of 900 vehicles released since 2011 in the US the Model 3 had the lowest probability of injury. That shows its better than Ford SUVs and Trucks in accidents and it has a bunch of room and of course much better reliability (motors rated a million miles) and radically better efficiency hence its ability to up sell. The fact that the rest of the world never bought into the scam to subsidize fossil fuels with heavier friction lined vehicles to push the foot print delusion and fuel economy exemptions shows that no one really wants these vehicles n themselves. And we know in the US Ford was hiding behind a tarrif of 25% on Japanese trucks and cannibalizing the value out of its cars to funnel better value into its trucks- but now that golden goose is dead. You could see in the history of vehicle consumption in the US no one really wanted to drive trucks and SUVs without the petro scamming pushing the marketing behind it and manipulating the prices, in short its been false fashion and is stupid for Americans economically who are more strapped with unnecessary debt than ever. Ford's business was made off a car- the model T. Just in terms of efficiency and wear you don't want to fight aero dynamics but here Ford is running away. Old limos were never truck based- there were some freak hummer items but going that way produced a bus. Tony Seba says Ford is doing this because it wants to save money to get its autonomous fleet up and running but Ford is so far behind on EVs and Autonomous that it looks like it would have to be running Teslas.
Thank you. But curious, dropping cars in their market of origin only. Funny if car version of Mustang will only be available over seas. Says a lot.
Ford has been dropping traditional sedans, not cars per se. Ford is expected (Carscoops) to launch 16 electric vehicles by 2022. The first is expected in 2020, the Mach 1 performance electric utility vehicle. Tesla made 311.5 million dollars in the 3rd quarter of 2018; its first significant profit ever. Ford made 993 million in the same quarter. Ford's public information states: "By 2020, Ford will offer North America’s freshest lineup among all full-line automakers, with its average showroom age dropping from 5.7 to 3.3 years as it replaces three-quarters of its lineup and adds four new trucks and SUVs. Ford is going all-in on hybrids, offering customers more performance and capability yet serving as a hedge against higher gas prices. All new Ford vehicles will have 4G LTE connectivity by the end of 2019. Ford is also introducing Ford Co-Pilot360, a new driver-assist technology package with standard automatic emergency braking and helps protect from the front, rear and sides." Tesla has done amazingly well and has finally made a decent profit. It is important that Tesla continue because quite a bit of debt comes due next year. However, Tesla has no more than a one or two year lead in electric vehicle technology. Whereas Nissan and GM sell $30,000 and $37,000 EVs respectively, the least expensive Tesla costs $50,000 including delivery ($42,500 with Federal tax credit). Kelley Blue Book states that the average new car price in 2018 is $35,000. If I had won the lottery, I definitely would have a Tesla. They are cool and sexy. However, the reality is that Tesla has yet to deliver on the promise of a $35,000 everyday electric car. Also, Teslas effectively become $3,750 more expensive on January 1, 2019 as the Federal tax credit phases out. The short answer is that Ford is NOT running from Tesla.
Mustang is becoming a CUV. Imagine that. This thing used to be a car.... a sport car. That is a joke even more funny than the rest. You see Ford could not say it was canceling the Mustang- it could not admit this. So it put the label on a Honda CRV competitor. Ford is running from Tesla. Hybrids are beyond stupid at this point- go ahead give all the market to Tesla- Musk didn't think it would work but he under estimated demand before. Tesla is more like 10 years ahead of these laggards. Even if Tesla just handed over all the plans and the equipment and the IP to these fool companies their balance sheets would place them 10 years behind. They simply can't and they will get creamed. It is time to start the Ford Death watch and let the Ford shorts begin. Humm curious where are they? Oh that's right where its legitimate there is shorts often don't materialize, no they materialize on things like betting on 911 before it went down. If Ford cancels its ridiculous dividend (outrageous 7% to rent seekers) maybe shorts will materialize? Nah because petrol would be paying them off behind the scenes to keep out.
“Tesla made 311.5 million dollars in the 3rd quarter of 2018; its first significant profit ever. Ford made 993 million in the same quarter.” Is this right? Ford sells 18x more vehicles but only made 3x more profit than Tesla in Q3?
2018 to date: Ford $3.8 billion profit, Tesla -$1.4 billion (1.7 billion loss in first 2 quarters - 0.3 billion 3rd quarter profit) 2017 Ford $7.6 billion profit, Tesla -$2.0 billion 2016 Ford $4.6 billion profit, Tesla -$0.7 billion 2015 Ford $7.4 billion profit, Tesla -$0.9 billion Startups, like Tesla, are expected to lose money initially. However, at some point they quit being a startup and need to make money. Indirectly, Tesla buyers have received more than 1.5 billion dollars in purchase assistance through the Federal tax credit. That credit is phasing out next year for Tesla buyers. Tesla is responsible for warranty repairs on its cars. As it sells more cars, that cost increases. The pent-up demand for the Model 3 may be satisfied at some point next year. Finally, other companies will launch ever more competitive EVs and PHEVs.
Probably not a good idea to discuss relative profits when stating 'expected to lose money.' If you have a business model, lets discuss it. My recommendation is read the 2017 Q3, Q4; 2018 Q1, Q2, and Q3 reports like I have so you won't be surprised. You can find them in the SEC.gov filings or the Tesla 'Investor relations' web pages. Tesla buyers have received more than 1.5 billion dollars in purchase assistance through the Federal tax credit. That credit is phasing out next year for Tesla buyers. - As was expected. Yet the +200,000 Teslas are avoiding purchase of ~150,000,000 gallons of gas/diesel (15,000 mi/yr, 20 MPG, $3/gal) or ~$450 M of fuel each year. EVs like the Tesla are the ultimate, flex fuel. The lower demand keeps gas/diesel fuel costs lower for everyone else. Tesla is responsible for warranty repairs on its cars. As it sells more cars, that cost increases. - Tesla warranty 4 yr/50,000 mi and 8 yr battery drive train. The Ford warranty is 3 yr/36,000 mi and 5 yr/60,000 mi. Which would a customer prefer? This encourages more sales. The pent-up demand for the Model 3 may be satisfied at some point next year. - Please read the 2018 Q3 earnings report because it suggests 2-3 years before production meets demand. Tesla is not yet leasing Model 3 in the USA and foreign sales of USA production won't start until next year. Furthermore, Tesla has started building a China factory. As Tesla's production skills improve, lower prices Model 3s will eventually be offered. Finally, other companies will launch ever more competitive EVs and PHEVs. - Today, these appear to be 'compliance' vehicles whose cost is subsidized by their existing gas/diesel vehicles. As 'loss leaders', they are poorly designed (see signature.) As a $2 B fine, VW was forced to deploy a nation wide, fast DC charging network, Electrify America. As planned, it is too small and has infantile problems (I have visited the Manchester TN station three times and only charged twice.) Tesla competitors are not supporting the VW charging network. Worse, their dealers lock up their chargers at night and the weekend. In contrast, Tesla SuperChargers are maintained, expanding, and open 24x7. You've come to an excellent place to discuss Tesla vs 'the world.' Bob Wilson
