Ford beat Wall Street expectations in Q2 with a net income of $1.9 billion and adjusted earnings before interest and taxes of $3.8 billion.
This is big news for the Detroit-based automaker, which noted that its Ford Pro division drove most of the success.
Per the Detroit Free Press, the automaker also revealed that its Model e division is losing more money than initially forecasted. The Model e division is forecasted to lose $4.5 billion for the full year and will eventually recoup those losses.
Although this is not great news on the EV side, Morgan Stanley praised Ford for being transparent about the difficulty of transitioning to EVs.
Ford’s Chief Financial Officer John Lawler noted this when asked about the e division:
We’re not shying away from our EV plans. The transition to EVs is happening. We’re in really good shape.
While Ford’s CEO Jim Farley noted that the company is bringing new customers to its e division, he said that more than 60 per cent of Mustang Mach-e customers are new to Ford. While the F150 Lightning is also drawing in new customers with over 50 per cent of owners new to the company.
For Ford, these overall numbers are good, and if they can absorb the losses in the e divison with Ford Pro gains for the time being, it should set the company up for long-term success.
