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I listened into Ford's earnings call and while it was mostly blah blah blah, there were a few key points that caught my attention, and my thoughts,
* Ford thinks GM's strategy of reusing existing nameplates and configurations in EV's is a missed opportunity. Ford thinks each all new EV should open a new segment for growth, be designed for volume, and be optimized for the platform.
I think Ford is exactly right, as I keep saying "Build a better Model Y" is the first thing to do, you do not need to build 5 models that are all inferior to the Model Y in this way or that way. Just follow Tesla's lead but fix Tesla's shortfalls on quality and interior (suspension stiffness). Those that disagree with me on this, just need to think that Model Y by itself outsells the entire Cadillac, and Buick brand in the USA. Model Y also has a very high average transaction price, higher than Buick and on par with Cadillac.
* Doug Field (the man who led engineering of 3 and Y at Tesla, and brought them to production) was on the call for Ford, saying Ford is looking hard at their new platforms, and looking at every single watt consumed and trying to optimize, so they can get longer range with smaller battery (pretty much Tesla's strategy) smaller battery means lower cost (higher margin).
Now I think Ford is way behind GM is building out their EV supply chain and battery infrastructure, but I have faith Ford's next gen EV's will be very competitive with Tesla. GM, seems to be taking a different approach and racing to the bottom to sell the cheapest EV. This trying to sell low price models never works for GM or anyone else, there are plenty of people who will pay $10K more to have a fully optimized EV, no need to be a bottom dweller. (note Hyundai and Kia moving upmarket in EV's not down)
On Fords investment in Rivian, I almost feel sorry for Ford, they declared their gains on the Rivian investment last year, then had to take a $5.4B write down in Q1, and the pain is not over as Rivian has dropped another 40% in the last month, so unless that improves Ford will have to take another big write down for Q2. At this point Ford has nearly lost all of their gains in the Rivian investment.
* Ford thinks GM's strategy of reusing existing nameplates and configurations in EV's is a missed opportunity. Ford thinks each all new EV should open a new segment for growth, be designed for volume, and be optimized for the platform.
I think Ford is exactly right, as I keep saying "Build a better Model Y" is the first thing to do, you do not need to build 5 models that are all inferior to the Model Y in this way or that way. Just follow Tesla's lead but fix Tesla's shortfalls on quality and interior (suspension stiffness). Those that disagree with me on this, just need to think that Model Y by itself outsells the entire Cadillac, and Buick brand in the USA. Model Y also has a very high average transaction price, higher than Buick and on par with Cadillac.
* Doug Field (the man who led engineering of 3 and Y at Tesla, and brought them to production) was on the call for Ford, saying Ford is looking hard at their new platforms, and looking at every single watt consumed and trying to optimize, so they can get longer range with smaller battery (pretty much Tesla's strategy) smaller battery means lower cost (higher margin).
Now I think Ford is way behind GM is building out their EV supply chain and battery infrastructure, but I have faith Ford's next gen EV's will be very competitive with Tesla. GM, seems to be taking a different approach and racing to the bottom to sell the cheapest EV. This trying to sell low price models never works for GM or anyone else, there are plenty of people who will pay $10K more to have a fully optimized EV, no need to be a bottom dweller. (note Hyundai and Kia moving upmarket in EV's not down)
On Fords investment in Rivian, I almost feel sorry for Ford, they declared their gains on the Rivian investment last year, then had to take a $5.4B write down in Q1, and the pain is not over as Rivian has dropped another 40% in the last month, so unless that improves Ford will have to take another big write down for Q2. At this point Ford has nearly lost all of their gains in the Rivian investment.