Ford CEO Urges The Wall Street To ‘Stop Looking At Tesla’

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Ford Motor Co (NYSE: F) is in focus today after Jim Farley – its chief executive urged Wall Street to forget about Tesla Inc (Nasdaq: TSLA).

Ford touts its ‘Pro’ unit as the future of auto industry

The chief executive instead wants them to focus on his company’s “Pro” segment that approximately doubled its earnings (pre-tax) in 2023 to $7.2 billion.

 

If you’re looking for the future of the automotive industry, stop looking at FSD and Tesla. Look at Ford Pro. It’s got half a million subscribers with 50% gross margin.

Farley made that comment at a Wolfe Research conference on Thursday.

The “Pro” business, he argued, is where Deere & Co was about seven years ago. Shares of the farm equipment behemoth that reported its quarterly financial results today have since gained a whopping 235%.

CEO Farley says Ford Pro unit is undervalued

Note that Ford Motor expects pre-tax earnings attributed to its “Pro” segment to print between $8.0 billion and $9.0 billion in 2024.

Its traditional business or what it calls the “Blue” unit, in comparison, is seen bringing in $7.0 billion to $7.5 billion in pre-tax earnings while the Model e or its electric vehicles segment is projected to lose another $5.0 billion to $5.5 billion in 2024.

The lithium squeeze is real. It will not be enough lithium to meet the growing demand from electric vehicles. The lithium shortage will ultimately slow down the EV adoption. A long-term bottleneck that need massive investments to catch up with demand. https://t.co/e2GrilQnKZ

— Thematica (@Thematicafunds) November 5, 2021

CEO Farley dubbed the “Pro” unit undervalued on Thursday – and a few of the Wall Street analysts including Adam Jonas of Morgan Stanley do agree with him.

The news arrives only a day after thousands of Ford’s white-collar U.K. staff warned of a strike after rejecting its pay offer as Invezz reported here.

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