ford stock

Ford (NYSE: F) released its US August deliveries today. The company reported fewer deliveries in August as compared to July. However, Ford’s deliveries were higher on a yearly basis.

Ford delivered a total of 158,088 cars in August which was 27.3% higher YoY. Of these 83,347 were trucks and 71,201 were SUVs. Ford delivered a total of 5,897 EVs in the month which was up over four times from the corresponding month last year. However, sales fell 23% as compared to July.

The YoY rise in EV sales is not surprising as Ford is gradually ramping up production. Also, earlier this year, it started to deliver the all-electric version of its F-150 pickup truck. It had closed the bookings after the first 200,000 orders but recently resumed the bookings, albeit at a higher price.

Ford announced a hike between $6,000-$8,500 for the F-150 Lightning which increased the starting price for the model to $47,000. The F-150’s ICE (internal combustion engine) avatar has been America’s best-selling pickup for decades.

Ford is banking on the success of its electric version which would compete with Tesla’s Cybertruck. Tesla would start delivering the Cybertruck next year.

Key Takeaways from Ford’s August deliveries

Ford said it was America’s best-selling brand in both July and August. Its August sales growth of 27.3% was way ahead of the overall industry growth of 4.8%. The automotive industry, including Ford, is grappling with a chip shortage. This has led to production loss and increased the wait times for the best-selling models.

The chip industry is going through turbulent times. While chips used in cars are in short supply, there is an oversupply of chips that go in PCs. Broadcom has a lower exposure to the consumer market and has been somewhat immune from the oversupply situation in that market. Broadcom stock is trading higher today after reporting an earnings beat.

Coming back to Ford, the company was upbeat about its August performance. Andrew Frick, Ford vice president of sales, distribution, and trucks said, “F-Series was America’s best-selling truck, best-selling hybrid truck and best-selling electric truck with F-150 Lightning in August. Ford’s overall electric vehicle portfolio expanded four–fold in July, while conquesting from competitors at a rate over 60%.”

Ray Dalio Bought More Ford Shares in the Second Quarter

Bank of America is optimistic about the EV plans of both Ford and General Motors and expects them to snatch market share for Tesla which is the market leader in the US by a wide margin. While some Wall Street analysts have turned bearish on F stock amid the recession concerns, billionaire hedge fund manager Ray Dalio bought more Ford shares in the second quarter.

Dalio also added more shares of Lucid Motors, NIO, as well as Xpeng Motors. Both NIO and Xpeng Motors shares fell yesterday after releasing their August deliveries. NIO delivered 10,677 cars in August, which was 81.6% higher YoY. It delivered 71,556 vehicles in the first eight months of the year which took its cumulative deliveries to 238,626.

Xpeng Motors delivered 9,578 EVs in August, which was 33% higher than the corresponding period last year. However, its deliveries were lower as compared to July. Li Auto delivered 4,571 cars in August, which was less than half of what it delivered in the corresponding month last year.

Meanwhile, Wall Street analysts remain bullish on NIO and other Chinese EV companies. Deutsche Bank advises investors to buy NIO stock and is particularly bullish on the company’s international expansion, including an eventual entry into the US market.

Ford’s EV Plans Are Ambitious

Ford has set ambitious plans for its EV business. It expects its annual EV production run rate to reach 600,000 by the end of 2023 and 2 million by 2026. The company had previously restructured the business between the electric and ICE business.

Starting next year, Ford would start reporting the results for Ford Blue, which is the traditional ICE business, Ford Model e, which is the electric vehicle business, and Ford Pro, which is the commercial vehicle business, separately. This would give markets better insights into the performance of Ford’s EV business.

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