420,000 vehicles being recalled for an airbag safety problem this week on top of….
\*EV Losses - Ford themselves stated they expect to lose $4 billion this year on their EV vehicles. They also expect $1 billion in tariff expenses to hit their bottomline in 2026
Recalls and warranty expenses keep erasing company profits
\*Truck demand is at its peak level. With ridiculous $90,000 truck price tags, consumer spending weakening, construction slowing, fleet purchases slowing and dealer lots full of aging vehicles, the signs are really obvious that the current and future demand for the Ford brand is slowing
\*Ford has it’s own financing for their car buyers at dealerships called Ford Credit. Monthly car payment defaults are at their highest rate in 32 years. More borrowers than ever are more than 60 days behind on their car payment. Due to Ford having their own in house lending, Ford dealers can more easily approve subprime borrowers who can’t get approved anywhere else, the same group of borrowers that are most likely to default
\*The cherry on top is Ford CEO Jim Farley saying that Chinese automakers, particularly BYD, are the ultimate benchmark and greatest threat in the global electric vehicle race. He’s stunned by BYD’s massive scale, vertical integration, and aggressive cost advantages, he is actively redesigning Ford’s EV strategy to replicate the Chinese auto giant's affordability and efficiency. Though not sold in the USA at the moment, he is currently daily driving a BYD in America lol
For anyone who doesn’t have a thing for cars, Ford and all domestic brands are notorious pieces of shit
Position: laying next to my sugar baby and holding 170 contracts $12 June 26 Puts. Market can stay irrational longer than you can stay solvent yaddayadda