Ford Reports Devastating Losses Thanks To Electric Vehicle Gamble

[mountaineer]

This should come as a complete surprise to no one.

Ford Reports Devastating Losses Thanks To Electric Vehicle Gamble
Thomas Catenacci, Energy & Environment Reporter
April 28, 2022 2:12 PM ET

Major U.S. automaker Ford blamed its sizable investment in electric vehicle (EV) company Rivian for its dramatic revenue decline in the first quarter of 2022.

Ford reported revenue of $34.5 billion between January and March, a 5% decline relative to the same period in 2021, and a net loss of $3.1 billion, according to the company’s earnings report released Wednesday. The Detroit automaker said its large investment in Rivian accounted for $5.4 billion in losses during the first quarter.

“A net loss of $3.1 billion was primarily attributable to a mark-to-market loss of $5.4 billion on the company’s investment in Rivian,” Ford said in the earnings report.

Ford maintains a roughly 12% stake in Rivian, CNBC reported in November.   ...

Daily Caller

[Kamaji]

Recognizing a mark-to-market loss for tax purposes is generally at the discretion of the taxpayer; if Ford recognized a mark-to-market loss with respect to their investment in Rivian, then they did so primarily for tax purposes, not because they have suffered a realized economic loss.

[rustynail]

A shocking bolt to the blue.

[Free Vulcan]

Get woke go broke.

[LMAO]

Get woke go broke.

I need to get that in a hat, T-shirt, and bumper sticker

[Hoodat]

This should come as a complete surprise to no one.

Ford Reports Devastating Losses Thanks To Electric Vehicle Gamble

I wouldn't call it a "gamble".  I would call it 'abject stupidity'.

[sneakypete]

This should come as a complete surprise to no one.Daily Caller

@mountaineer

You mean people don't want to buy cars and trucks with limited ranges that they have to plug into their house and run up their electric bills every month?

Ahm shocked!

SHOCKED,AH TELLS YA!

[sneakypete]

I wouldn't call it a "gamble".  I would call it 'abject stupidity'.

@Hoodat

I would call it a case of goobermint extortion. The car companies are being REQUIRED by the feral goobermint to produce X number of electric cars and trucks each year in order to get the tax breaks they need to survive.

[IsailedawayfromFR]

Let Ford sink.

Toyota certainly knew better than to try to ram EVs down the customers' throats who do not want them.

Am betting that the federal government will scoop up every one of Ford's unsold EVs.  Hell, they may be stupid enough to force the military to obtain them.

Imagine trying to win a war with plugin vehicles.

[rebewranger]

Ford Reports Devastating Losses Thanks to Electric Vehicle Gamble
12 hours ago Eric Worrall 88 Comments
Essay by Eric Worrall

h/t Dr. Willie Soon; Ford claims supply chain issues are preventing them from satisfying strong market demand for electric vehicles.

Ford Reports Devastating Losses Thanks to Electric Vehicle Gamble

by Star News Staff | May 3, 2022
by Thomas Catenacci

Major U.S. automaker Ford blamed its sizable investment in electric vehicle (EV) company Rivian for its dramatic revenue decline in the first quarter of 2022.

Ford reported revenue of $34.5 billion between January and March, a 5% decline relative to the same period in 2021, and a net loss of $3.1 billion, according to the company’s earnings report released Wednesday. The Detroit automaker said its large investment in Rivian accounted for $5.4 billion in losses during the first quarter.

https://wattsupwiththat.com/2022/05/05/ford-reports-devastating-losses-thanks-to-electric-vehicle-gamble/

[rebewranger]

If the government is forcing everyone to go electric, shouldn't they be required to pay for them?

[Kamaji]

Folks, please keep in mind that this is a mark-to-market loss, not an actual, realized loss.

In the fourth quarter of 2021, Ford booked a huge gain on its Rivian investment - again, because it marks the investment to market.

The fact that Ford previously marked-up this investment (i.e., recognized a mark-to-market gain) means that it's not a simple task to figure out whether or not Ford would in fact have lost actual money on this investment if it were to sell the shares today.

 

[sneakypete]

If the government is forcing everyone to go electric, shouldn't they be required to pay for them?

@rangerrebew

You MEANT to write "Shouldn't Ford demand the taxpayers reimburse them for their losses",right?

After all,Congress NEVER spends THEIR money,they spend tax money.

[DB]

If the government is forcing everyone to go electric, shouldn't they be required to pay for them?

You mean like our health care? Trump said "the government was going to pay for the 20% that can't afford it", so probably something similar. Along with Obama phones they'll have Kamala cars...

[GtHawk]

If the government is forcing everyone to go electric, shouldn't they be required to pay for them?

So you're saying that the taxpayer(government) should be paying for the electric cars that a minority of Americans want? Sure why not, we already subsidize their purchases, road and infrastructure wear and strain on the electric grid.

[GtHawk]

Get woke go broke.

Just wait, as of now GM is talking about completely eliminating ICE vehicle from it's lineup by 2035 or sooner. Nice for them to let stockholders know they are planning corporate suicide so they can get out beforehand.

[Hoodat]

In the fourth quarter of 2021, Ford booked a huge gain on its Rivian investment - again, because it marks the investment to market.

Rivian is turning into quite the scandal here in Georgia.  The current Governor is waist-deep in it.

[DefiantMassRINO]

You gotta be careful investing with these bleeding edge technology companies ... they value progress and growth above everything else  ... they also believe its better to ask for forgiveness than to ask for permission ... they get partners to invest in a product that really doesn't exist, hoping to play catch-up ... Bill Gates sold IBM an operating system when he didn't have one; he went out and bought someone else's Quick and Dirty Operating System (QDOS -> DOS) to make good on his end of the deal.

[sneakypete]

Just wait, as of now GM is talking about completely eliminating ICE vehicle from it's lineup by 2035 or sooner. Nice for them to let stockholders know they are planning corporate suicide so they can get out beforehand.

@GtHawk

Is it a result of GM planning,or a result of intimidation by the feral goobermint?

[Smokin Joe]

@GtHawk

Is it a result of GM planning,or a result of intimidation by the feral goobermint?

It might be time to scrounge up a couple of rebuildable engines...

[GtHawk]

@GtHawk

Is it a result of GM planning,or a result of intimidation by the feral goobermint?

I think it's a result of GM being dumbasses.

[roamer_1]

It might be time to scrounge up a couple of rebuildable engines...

Try stuffing old-school into a modern truck sometime. It's a nightmare. Better to just stay old-school all the way till you can't. We turned a 90's pickup analog one time. It wound up being frame-up, and everything replaced, including wiring and the front diff. Custom build the dash from scratch. I am telling you, it ain't worth it.

I predict the same barriers will exist trying to convert electric-based.