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I hate American cars. For years, I’ve Detroit muscle fans, which has led to many colorful emails and social media posts. However, a verbal exchange with an intelligent investor replaced my mind, at least from a commercial perspective. So while I probably wouldn’t be stuck in an American car, I’m now a big advocate for Ford (NYSE: F).
Yes, you read it right. While I question Ford’s production quality, which means, among other things, daily repairs or repairs, honestly, inventory F is a long-term opportunity. In fact, with Tesla (NASDAQ: TSLA) pulling from tray after tray, the electric vehicle manufacturer begs a competitor to burst its bubble. This corporate is the one that started it all, Ford.
During last year’s quarter, Ford delivered 28-cent EPS, without the consensual expectation of 31 cents. However, the company will take this clearly from what awaits you.
On the line of profits, analysts forecast $19.9 billion. Individual estimates of $16.5 billion to $26.7 billion. In the current quarter of 2019, Ford generated $38.9 billion, surpassing the $38.6 billion consensus.
Of course, the comparable ones compared to last year are terrible. Therefore, I do not expect real numbers to be an important component of Action F. Instead, it’s about the Mustang.
Before the pandemic, I struggled to imagine a large-scale transition to EV. Although generation has progressed considerably, the lack of wider infrastructure has bothered me. In fact, it remains a factor, among many others.
Certainly, not having to perform a maintenance task is not an explanation for why absolutely replacing the platform. However, other considerations came to mind. When the oil war between Saudi Arabia and Russia brought the value of crude oil below zero, we realized that we didn’t really have independence from power; Our key products were indebted to foreign powers.
In addition, coronavirus has replaced the way we work. And with this unique transition that adjusts the paradigm, the “autonomy anxiety” for electric cars has evaporated: we were driving so much.
As a result, Ford’s new all-electric Mustang Mach-E arrives at the right time. First, Tesla has more than proven that the concept is valid and practical. Second, coronavirus has brought a new popular that favors long-term electric cars. Combine the two and you will have a compelling case for action F.
In addition, the Mach-E base style has a corneal value of less than $44,000. It gives Tesla a choice of Model Y, which starts at $45,690 at the time of writing. In addition, the Mach-E GT functional edition only costs $4,800 more than the Y Performance style. But for me, the GT is much more muscular and horny.
If you browse automotive blogs, the recurring observation of enthusiasts is that they love the Ford Mustang Mach-E from afar. They just stopped Ford to give up Mustang’s name.
Believe me, I understand. Before I switched to Mercedes-Benz’s AMG brand, I was talking about Japanese imports. Certainly, while I had the quality and reliability that I can boast, I was smoked in the lampposts, that is, on a legally authorized occasion, while a cowboy stroked his abdominal beer to the baseline.
That’s the appeal of the Mustang and other American cars in the trash. Go fast on a hotline and not much else. And it’s annoying while you’re doing it.
It’s so big. But like the Confederate flag, American muscle cars are outdated. Mainly, it’s because other people who love Detroit muscle die. In all honesty, Ford is making a brilliant move here, so I buy F shares than General Motors shares (NYSE: GM).
However, the peak demand for these pony cars occurred between the 1980s and the time part of the 2000s. Since 2008, average annual unit sales have fallen by 41% to levels in 1981-2007.
In other words, the classic Mustang, a two-door coupe, is no longer relevant. And it doesn’t make sense for Ford to appease a declining user base. Management has made a difficult decision.
Just like I did when I swallowed my pride and bought F shares.
Unlike the Trump administration, I don’t live in a reality of choice. I completely sense that Tesla has EV space. In addition, all Robinhood investors will continue to pressure TSLA until he loses office.
In addition, the Mustang Mach-E is a persuasive counterargument of Tesla electric vehicles, which, if I’m honest, start to look the same. Ford is a natural automaker and knows that good fortune is more than the implementation of cutting-edge technologies. In contrast, the most sought after cars are difficult to explain but are quantifiable thanks to sales accumulation.
Of course, it’s a threat like anything. But I see a wonderful opportunity in this American automaker, even though I still hate American cars.
Josh Enomoto, a former senior business analyst at Sony Electronics, helped negotiate primary contracts with Fortune Global 500 companies. In recent years, it has provided unique and critical data for investment markets as well as other sectors, adding laws, structure control and health. At the time of writing those lines, it’s a long inventory F.
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