Ford Earnings Call Reflected Strong Results, But EV Losses In The Billions For Second Quarter

Key takeaways

• Ford has raised its full-year guidance, with its Q2 earnings beat smashing EPS and sales
• However, widening losses on the fledgling EV division had investors concerned
• Ford shares fell as much as 4.4% during Friday trading

Earnings season is in full swing, but the automaker sector has had a tough race. Ford was the latest in Wall Street’s firing line, with the stock falling despite better-than-anticipated earnings. The Q2 earnings were bolstered by solid pricing and traditional vehicle demand, but red flags were waving at the EV division’s widening losses.

Investors seem to firmly believe that the sector faces upcoming challenges left, right and center. With EV adoption still slow, new car prices up and car loan borrowing at record highs, the likes of Ford and GM are stuck between a rock and a hard place. Here’s what went down and why Ford’s EV dream isn’t to be just yet.