Ford CEO Jim Farley Challenges Tesla's Full Self-Driving System with Ford Pro's Success
In a bold statement, Ford CEO Jim Farley has thrown down the gauntlet at Tesla and its Full Self-Driving (FSD) autonomous driving system, claiming that Ford Pro is the true future of the automotive industry. Speaking at the Wolfe Research conference on Thursday, Farley confidently stated, "If you're looking for the future of the automotive industry, stop looking at FSD and Tesla. Look at Ford Pro."
Ford Pro is the legacy automaker's business unit specifically designed for commercial customers, including fleet operators and government agencies. What sets Ford Pro apart is its impressive track record, boasting half a million subscribers and an impressive 50% gross margin. Farley predicts that Ford Pro's pretax earnings will soar between $8 billion and $9 billion in 2024, firmly establishing its dominance in the market.
Comparatively, Ford Blue, the company's unit focusing on internal combustion engine vehicles, is projected to have pretax earnings of approximately $7 billion to $7.5 billion. However, Ford's Model e electric vehicle unit is facing some challenges, with expected losses ranging between $5 billion and $5.5 billion. Despite initial concerns, Ford dealers witnessed a remarkable Q4 2023, making it the company's best-ever quarter for electric vehicle sales, totaling an impressive 72,608.
It's worth noting that the Model e EV unit experienced some setbacks in November 2023 when around 400 dealers opted out of the certification program due to lower-than-expected enrollment figures. However, Ford's strong performance in the electric vehicle market shows its resilience and dedication to sustainable mobility.
With Ford Pro's remarkable success and consistent growth, Farley's confidence in the business unit sets a new benchmark for the industry. As the automotive landscape continues to evolve, it seems Ford Pro is a force to be reckoned with, challenging Tesla and its widely acclaimed FSD system.
Analyst comment
Positive news. Ford CEO expresses confidence in Ford Pro’s future and predicts a significant increase in its pretax earnings for 2024. Despite some dealer opt-outs from the Model e EV program, Ford achieved its best-ever quarter for EV sales in Q4 2023. Analyst: Market expects Ford’s focus on commercial customers and strong EV sales to drive growth in the coming years.
