Wall Street praises Ford's EV plans but questions its sales and profit margin targets

Key Facts

• Morgan Stanley expects Ford to produce 560,000 EV units by 2026 and estimates the company’s adjusted operating profit margin on EVs to be only 4% by 2026, not 10%.
• “All in, this presents opportunities to expand ICE margins, but we still wonder if it will be enough to reach a 10% margin by 2026 as margin-dilutive EVs take a greater share of total volumes over the coming years,” Rosner wrote in an investor note Wednesday.
• Overall, Wall Street viewed Ford’s plans, including separate reporting of the operations in 2023, as positives but far from a sure thing regarding the new profit margin and EV targets.
• “We are positive on the reorg as we believe it will accelerate Ford’s transition to an EV world,” Credit Suisse analyst Dan Levy told investors Thursday in a note.

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