all right we mentioned that Ford has reported earnings uh what we can tell you right now is the shares are rising in after hours trade because like its rival General Motors Ford raised its full year forecast uh of course it recently reorganized its businesses as well so we have a cleaner read on how its old school cars are doing versus its uh electric vehicles versus its commercial vehicles so let's bring in Bloomberg intelligence senior analyst Kevin Tynan right now Kevin I mentioned those three different business lines of Ford what we've what we learned is that the gas fueled models the old-school cars are really leading the way here for Ford that allowed it to boost its forecast and also beat analyst estimates for the second quarter is that a good thing that Ford is relying on its traditional business rather than the electric cars well it's the way it has to be right the the profitability is still in the internal combustion side of the business and electric vehicles for where they are in their ramp are still unprofitable you know the benefit of of a full-line automaker like Ford or like General Motors is they can sort of sprinkle in the EV launches and production and sales ramp as they need it and not forced to do something unprofitably so this is still a time in in terms of the profit dynamics of the technologies that they are leaning on internal combustion and that'll do that for a couple more years until uh you know those things reach a little bit closer to parity because they have the ability to do what is profitable more of what is profitable and less of what is not still at this stage of the game I am curious though about the EV side of this and we know that this is a long-term story so just that caveat out there here but when you look at the losses which continue in that EV unit to the tune of a billion dollars when you look at some of the pricing pressures at least anecdotally that we've heard about uh through some of the dealerships here how much do you think they have to keep spending in this space to get it up to a profit scale there's a ways to go right and and you're still dealing with you know a supply chain and materials costs that are a little bit all over the place right now um you know so so you look at something like Mustang Maki which is transacting right around sixty thousand dollars they'll be lucky if that's break even at that high of a price right now something like F-150 Lightning is transacting up around 85 000 which there's probably a little bit of margin in there but it's certainly nowhere as near on a profit contribution dollar basis that the internal combustion F-150 would be which is selling at sixty five thousand dollars so those Dynamics really have to level out and turn more favorable uh you know and it's a little bit of chicken and egg because you don't want to sell unprofitable things or ramp production on them until it's better but you don't reach those economies of scale till you do more of it what is your confidence that Ford is going to achieve its Target of eight percent return on EVS before interest in taxes by the end of 2026 is this something that the stock price will turn on if Ford makes adjustments to that goal well look it's never mattered to Tesla right what goals they hit or don't hit and while it looks aggressive um I I would say that I wouldn't see the any of the companies backing off aggressive EV goals because there's no benefit to doing it right if you back off the goal you know you get ding for it if you miss it nobody notices because you know you point to the next goal that's over the next Hill
