RIP Ford (Patreon)

Ford has recently revised its electric vehicle (EV) strategy, opting to focus more on hybrid models rather than fully electric vehicles. This shift comes as Ford grapples with significant financial losses in its EV division and changing market dynamics. In the first quarter of 2024, Ford's Model e division, which handles its EV production, reported losses of $1.3 billion, averaging a $132,000 loss per vehicle sold. These financial challenges have prompted Ford to reevaluate its approach to EVs.

Ford's strategic pivot involves scrapping plans for an all-electric three-row SUV that was initially set for release in 2025. Instead, the company will prioritize hybrid vehicles, which combine gasoline and electric power. This decision is ludicrous. Double the complexity, very little efficiency, double the cost, double the points of failure. Idiotic Strategy. BEV's will crush them and are already cheaper than Hybrids.

Ford's decision to delay the launch of new all-electric models until at least 2027 reflects its intention to achieve profitability within the first year of a vehicle's launch. They will NEVER catch up. I repeat. They are not going to make it. They will be left surviving on F150's as a workman truck but the CT will also eat into that.

This strategic shift has drawn parallels to the innovator's dilemma, a concept popularized by Clayton Christensen, which describes how established companies struggle to adapt to disruptive technologies. This will benefit Tesla. There is pretty much no competition except for Chinese car makers. Not that Tesla is a car maker anyhow.

Farzad puts it well - guaranteed bankruptcy. I wish it were higher, and I would short it, but these Bankruptcies take time.