Ford Shares Plunge Nearly 10% After Q3 Results Despite Beats Estimates – Ford Motor (NYSE:F)

Ford Motor Co F According to Benzinga Pro, shares opened with a 10% nosedive on Tuesday morning, a day after the company reported its third-quarter financial results in the after-hours session.

Ford reported revenue of $46.2 billion, beating the consensus estimate of $41.88 billion. The company's earnings per share were 49 cents, beating expectations of 47 cents.

However, the EV segment branded “Model e” recorded a significant EBIT loss of $1.2 billion in the third quarter. Sales fell 33% year over year, while global hybrid vehicle sales rose 30% in the quarter. The Model e segment reported an EBIT loss of $1.2 billion, although the company saw an improvement in profit performance due to cost cuts.

“Obviously our strategic advantages are not being reflected as they should,” the CEO said Jim Farley said during the conference call.

“Costs, especially warranty costs, have slowed our profitability.”

See also: Lucid CEO throws cold water on Tesla's robotaxi vision, saying self-driving cars won't come to market until the 2030s.

This loss is due to industry-wide pricing pressures, which have been an ongoing issue throughout the year and resulted in a cumulative loss of $3.7 billion through the end of September. Ford now expects a full-year EBIT loss of $5 billion for the Model E segment.

Ford forecast full-year adjusted EBITDA of about $10 billion, down from the range of $10 billion to $12 billion. The company also expects free cash flow to be between $7.5 billion and $8.5 billion.

CEO Jim Farley has highlighted the impact of competitors' aggressive pricing and leasing tactics, which have placed additional strain on the company's electric vehicle segment. These challenges highlight the competitive landscape in the electric vehicle market and the pressure automakers face to maintain profitability as they transition to electric vehicles.

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This story was created with Benzinga Neuro and edited by Pooja Rajkumari