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The analyst who called NVIDIA in 2010 just named his top 10 stocks and Ford wasn't one of them. Get them here FREE.
The Wall Street Journal asked Hyundai Motor CEO José Muñoz if American car companies can make EVs to compete with Chinese ones. “It is impossible, unless they are subsidized by the government,” he said. The chances that the US government will do that are zero. It would have to hand out billions of dollars like it was candy. A new Wall Street Journal profile of Ford’s semi-secret EV project shows that Muñoz is absolutely correct.
The Ford (NYSE: F) plan is yet another blunder by CEO Jim Farley, who has led Ford through failed EV projects since his company said in 2021 that the No. 2 car company would invest $20 billion by the end of 2025. The goal was to reach 40% of Ford's sales from EVs by 2030. Farlay said when the plan was announced, “This is our biggest opportunity for growth and value creation since Henry Ford started to scale the Model T, and we’re grabbing it with both hands."
Farley has been involved in this process, which led to Doug Field's departure as the chief EV, digital, and design officer last week. Someone had to take the blame for Ford’s failure. Executive Chairman, Bill Ford, and Farley were not on that list. It is astonishing that Bill Ford has been chairman since 1999. At any company that is not family-controlled, he would have been gone in the early 21st Century.
The latest plan is to replace the manufacturing process Ford has used for decades in one form or another. Aiming at Tesla (NASDAQ: TSLA) is not enough. Ford wants to go up against Chinese EV companies, which, by many admissions, are years ahead of legacy car companies worldwide. Farley has one thing right. The Chinese EV firms have benefited from government support there. That said, their production costs are low, and their vehicles are extraordinary. What is saving Ford, for the time being, is the 100% tariffs on Chinese cars. Without it, Ford would be gone in a matter of a few years, or less. If Farley keeps his job, he can go down with the ship.
For some reason, Ford believes that because its EV revolution will be run by executives from Apple (NASDAQ: AAPL) and Tesla, this will make a difference. Legacy car companies have looked to people with similar skills. This has not made a difference in any cases
Legacy car companies have largely returned to their excellence in building hybrids and gas-powered vehicles. Ford, on the other hand, keeps banging its head against the wall.
This analyst's 2025 picks are up 106% on average. He just named his top 10 stocks to buy in 2026. Get them here FREE.