Tesla Inc TSLA CEO Elon Musk has praised Ford Motor Co‘S f Electric vehicle strategy although this segment saw a huge drop in sales and a collapse in margins.
What happened: “Ford’s overall EV strategy is smart,” Musk said. The Tesla CEO responded to a Twitter user who expressed shock at Ford’s huge negative EV net margins.
“Always difficult with margins for new vehicle lines, especially when there are big technology changes,” Musk replied. “Ford’s F-150 Lightning electric truck is in high demand.”
Why it matters: Ford said so on Wednesday First-quarter revenue increased 20% year over year to $41.5 billion, beating the consensus estimate of $36.03 billion Gasoline Pro.
The Ford Model e segment, which develops electric vehicles, saw sales fall 27% to $700 million. According to media reports, this segment had a profit margin of around minus 40% on an EBIT basis in 2022.
ford expects to increase manufacturing capacity to a global production rate of 600,000 EV units by the end of 2023 and maintains its 2023 guidance for adjusted EBIT in a range of $9 billion to $11 billion and adjusted free cash flow of approximately $6 billion US dollar fixed.
Former Ford CEO mark fields estimated Tesla after its investor day in March. “Tesla is just a generation ahead of the other automakers” he had said.
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