2024-02-15 12:55:53 ET
Ford Motor Co (NYSE: F) is in focus today after Jim Farley – its chief executive urged the 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 the 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%.
Watch here: https://www.youtube.com/embed/-EVU4tK2dEk?feature=oembedCEO 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 this year while the Model e or its electric vehicles segment is projected to lose another $5.0 billion to $5.5 billion in 2024.
CEO Farley dubbed the “Pro” unit undervalued today – 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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