Watching Ford shares as it cuts EV investment after poor Q3
A poor third quarter set of earnings from Ford Motor has led it to examine how it does a number of things.
The drop in earnings was mostly due to the strike by UAW workers, which saw negotiations this week come to a possible conclusion, although the vote is still to be done. However, after the release of the Q3 numbers, Ford also said it is now delaying about $12 billion in planned investments on EVs, including construction of a second battery plant with joint venture partner SK On due to softening demand for higher priced premium electric vehicles.
(AI Video Transcript)
Ford Motors
Ford Motors has had a tough time lately, partly because of a strike by the Auto Workers Union. This strike lasted almost six weeks and cost the company a whopping $1.3 billion. As a result, Ford fell short of the expectations of Wall Street, earning only 39 cents per share instead of the expected 45 cents. The company's revenue currently stands at $41.18 billion, with $41.22 billion of that being due to the worker strike. Thankfully, the strike is now over, as a tentative deal has been reached.
Ford's stock price
Ford's troubles don't end there, though. They have also decided to delay $12 billion in planned investments on electric vehicles, including the construction of a new battery plant. This decision is due to a decrease in demand for the more expensive electric cars. As a result of all these challenges, Ford's stock price took a hit and reached its lowest point since July 1st. At the end of trading, the stock was worth $10.96 per share, and it continued to decline in extended trade later that night. It's clear that these financial struggles have had a significant impact on the company's stock performance.
The Auto Workers Union strike
In summary, Ford Motors has faced difficulties in the past quarter, with the Auto Workers Union strike and the decision to delay investments in electric vehicles. These challenges have caused the company to fall short of expectations and have led to a decline in stock price. However, with the strike now over and a tentative deal in place, Ford has an opportunity to regroup and make necessary changes to improve their financial situation.
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