Is Ford Finally Ready to Take On Tesla?
Ford Motor Company (NYSE: F) just turned in great second-quarter results on Wednesday. There's no denying that. The company appears primed and ready to take on electric vehicle (EV) trailblazer Tesla. It had almost $3 billion in operating cash flows that it will use to support its aggressive plans to ramp up EV production.
Investors liked what it had to say about its EV game plan, and cheered a substantial increase in its dividend. The inevitable comparison for any automaker going electric will be to see if it can match Tesla's success. Investors want to know whether Ford is in position to do that soon. A closer look into that investing thesis may persuade them to wait.
The second-quarter headline numbers were great. Ford's revenue soared 50% year over year to over $40 billion, and net income jumped 19%. But it takes more investigation to see if the stock belongs in the growth-oriented EV portion of a portfolio. Ford's reported automotive revenue beat analyst estimates by more than $3 billion in the second quarter. It also more than tripled its cash flows from operating activities compared to the year-ago quarter.
Source Fool.com