Ford (F) posted second quarter results, which showed adjusted earnings of $0.47 per share versus an expected $0.67. In addition, its Model e unit posted an EBIT (earnings before interest and taxes) loss.
Autoblog Editor-in-Chief Greg Migliore joins Wealth! to give insight into the recent earnings reports from big automakers and what it means for the auto sector at large moving forward.
When asked about Ford's Model e struggling with sales, Migliore states: "Right now EVs are in a tough spot because it's very competitive. The margins can be pretty thin on them. And, the technology is something that companies have to invest in to bring it to market. So for many companies, this is their first or second generation of electric vehicles, and they essentially need to pay off that technology. So right now, you're not going to fully realize that in the sticker prices of most vehicles. The federal tax incentive of $7,500, which is available for consumers, is meant to sort of ease that."
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This post was written by Nicholas Jacobino