Ford (NYSE:F)
On Tuesday, Ford stock dropped in response to two pieces of business news. As of 2:30 p.m. ET, Ford stock had fallen by over 3% and was still down by little more than 2%. Unexpected supplier prices and incomplete cars waiting for components have been cited as reasons for Ford’s (NYSE:F) third-quarter earnings warning. But today’s main story was about the corporation putting money into its future.
What’s the Reason?
Ford (NYSE:F), unlike GM, has made it plain that it does not intend to make the switch to becoming an EV-only manufacturer. Ford instead intends to carry with its Ford+ reorganization plan. There will be an electric vehicle division called Ford Model e, a division specializing in internal combustion engines called Ford Blue, and a third division catering to Ford Pro commercial and government clients. A new investment of $700 million in the Ford Blue business was announced today. Also, today, Ford (NYSE:F) requested a new trial after being sentenced to pay a $1.7 billion judgment by a Georgia jury relating to a truck accident that resulted in two deaths.
What’s Next?
In a rollover accident in 2014 involving a Ford F-250 pickup truck, the deceased’s family blamed Ford for their loved ones’ deaths. However, Ford (NYSE:F) is requesting a new trial because it claims it was improperly prevented from presenting data that might have shown that the vehicle in question was safe and that its roof structure would have ranked favorably relative to that of competitors. Plaintiff’s allegations centered on the roof’s layout.
Ford (NYSE:F) has already announced it would appeal the judgment, and many observers anticipated the number of damages would be lowered. However, the corporation is now contesting the punitive damages awarded in the previous trial and asking the court to order a new trial.
Ford (NYSE:F) also announced today that the company would be spending $700 million upgrading one of its factories in Kentucky. The investment at its truck facility is being made to “support vehicle production, including for the all-new 2023 Ford F-Series Super Duty® truck.” The revelation shouldn’t have surprised investors, given the firm has previously stated its intention to maintain its existing internal combustion engine business. Today’s decline in Ford stock is probably connected to the trend that started following its Q3 results caution.
Meta Description
Ford stock is indicating to shareholders that it is dedicated to its electric car future and continuing to sell internal combustion engine automobiles.
Featured Image – Megapixl © Oleschwander
Author Shariq Khan 
