This isn't entirely accurate. Most reporting record profits did so because of extraordinary events (i.e., Rivian investment, Nikola investment, market performance impacting future pension obligations) or because of their financing arms. Their core auto businesses are actually bleeding cash. That's the thing about manufacturing at scale. If you suddenly lose 200k of production capability, the margins on ALL of your cars sold is impacted, due to factory costs being absorbed on fewer units.
Yup, thanks for pointing that out. You saved me some time on writing that post. Ford has been fudging earnings all year. They'll likely continue to be able to do this for the next couple of quarters while inventory is tight and their Rivian stake holds up before the lock out period ends, but once those two factors crumbled....and they will.....the curtain will close on Ford. It's going to be fun to watch.
Would like that as a bumper sticker for my old S.Interesting that this isn't listed as being a limited edition. (And hasn't gone out of stock yet.) The scalpers that bought a bunch and put them on eBay immediately may end up stuck with them, or selling them for a loss.
Profit should be really good on these, the knock-offs, which look really close to the real thing, were selling for ~$30 on eBay.
As a lifelong sci-fi'er I love space and the big ideas, but as an engineer I am a bit flummoxed by the Mars happy talk I see here and elsewhere. Even if we get a tiny human presence under some Martian domes at incredible risk and expense over the next decades, there is no conceivable way to live sustainably on Mars. I loved "The Martian" (movie) but as best we can tell, can't actually grow anything on Martian soil, even cleverly bringing our own bacteria. Soil microbes cannot survive in any of the heavy-metal-contaminated toxic "soil" (really pulverized regolith) that we know of on Mars. And even if they could, we now know it took those early microbes 1-2 billion (!) years to form the biological substrate that plants eventually were able to utilize here on Terra Firma - and that was done with better atmosphere and solar conditions, a Van Allen belt to shield them, a temperature above 0, life-friendly oceans (!) and many other helpful terra-centric factors.
That doesn’t make sense, you are borrowing money and paying interest on it, which is non deductible. Why should you need to pay income tax over borrowed money? If you refinance your home, and take money out, do you pay tax on that money as well? No!
Well that wasn’t very predictable!
www.cnbc.com
F didn’t record any of the Rivian investment in Q2 or Q3 this year, and probably won‘t even in Q4 other than balances sheet assets.. and yet, they had record profits. I’ll agree, if op-ex goes down and revenues go UP, well then we get outsize profits due to lower manufacturing costs, materials and headcount. Similar was true with GM (and in that case they actually did a WRITE DOWN of investments which could have been profit offsetting).. POAHY also had records.. My only point is that not “all other manufacturers are struggling”. It’s just not the case. If F was struggling so much, my position wouldn’t be up 4-5 fold.. same with GM. We can also look at Japanese OEM’s TM, and european as well, again all reporting records. If it’s really just a shell game and not real, they sure have everyone believing it.
This is complete nonsense FUD. Ford specificaly breaks out their automotive EBIT on their earnings report. That number YTD through the first 3 quarters is a profit of 5.767 billion
3.8B other income was driven almost entirely driven by market revaluation of pension adjustments. Their profit last year was a mark to market of RVN. You can of course pick whichever narrative you want. They will also have another Other Income entry in Q4 courtesy RVN. There will be a mark to market as of the IPO and revaluation of those assets under US GAAP at year end as well (that will flow to Net Income). I'm sure you'll just chalk that up to another record quarter for them as well?
Whether it's Elon's shares or your calls ... does it matter
Whether it's Elon's shares or your calls ... does it matter
macros stink with Fed meeting in the way. Hoping for some good news heading into EOY.
+ Hope he takes a break for X'Mas - or he will be Santa for the Shorts and MM
