Electric vehicle checkpoint: Jim Cramer greets Ford CEO Farley

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Ford engine (F) – Get a report beat Wall Street’s expectations for second-quarter earnings and bolstered its forecast despite a global semiconductor shortage that weighed on the auto industry.

The company posted adjusted earnings of 13 cents per share and revenue of $ 26.8 billion. Automotive sales amounted to $ 24.13 billion.

Jim Cramer explained how Ford CEO Jim Farley has approached the global chip shortage differently from other automakers, saying, “Jim is not like most executives. Jim said ‘okay there is a shortage of chips … very energetic and find where I can get the chips. And, I’m going to DIY these full chips so that I don’t miss out on so many sales. I feel bad about the $ 2 billion … I have to cut that and stop selling anywhere I don’t make money, like in China. He found the chips… that’s what he did to respond to those commands. He worked himself and met almost everyone in the industry… he’s my type of guy.

“We are now poised to grow in the second half of the year and beyond due to searing products, pent-up demand and improving chip supply,” said Jim Farley, CEO of Ford.

“The demand for our first series of high volume electric vehicles has clearly exceeded our most optimistic projections,” he added. “Reservations for the F-150 Lightning have now exceeded 120,000 units, and 75% of those customers are new to Ford. We are now working around the clock to break down the constraints and increase our manufacturing capacity for these new battery-electric vehicles. “

On Real Money, contributor Kevin Curran writes that US-based companies that put their growth thesis on China, like Tesla, could be placed in a precarious position worthy of scrutiny by retail investors. Get more trading strategies and information about real money contributor investing.

With a bullish outlook for 2021, Farley sees a long way to go in Ford’s transition to an EV world with increased confidence in the company’s EV transition strategy.

Here’s the gist: See if Ford can keep post-profit profits low on the downside and close above the 50-day moving average on the upside, wrote Bret Kenwell of TheStreet.

General Motors (DG) – Get a report closed up 3.23% on Thursday; it is expected to report next week.

The company has filed a lawsuit against rival automaker Ford, claiming that the name of Ford’s new automated driving system BlueCruise is an infringement of its trademark Cruise.

GM filed a lawsuit in U.S. District Court for the Northern District of California seeking an injunction prohibiting Ford from further using the BlueCruise name, as well as actual and punitive damages, funds for future advertisements, restitution of any profit wrongly obtained and legal fees. .

You’re here (TSLA) – Get a report stocks added 4.69% to regular trading on Thursday. The company received a mixed response to its earnings earlier this week.

Cramer tweeted on Monday following the call in which CEO Elon Musk mentioned Apple’s potential future competitor (AAPL) – Get a report twice in a negative light and said he would no longer participate in earnings calls in the future unless he “has something really important” to say.

Shares of the luxury electric vehicle start-up Lucid Motors (LCID) – Get a report rose nearly 10% on Monday after their Nasdaq debut as the race to populate the world’s roads and highways with electric vehicles continues to intensify. The stock lost momentum this week, closing down 3.03% on Thursday at $ 23.35.

It also comes six months after Lucid announced he was teaming up with Churchill in a bid to take on Tesla and other electric vehicle makers like Fisker. (RSF) – Get a report in the United States and NIO (NIO) – Get a report and XPeng (XPEV) – Get a report in China, although Lucid is directly targeting Tesla.

Here is a list of electric vehicle stocks to watch out for:

You’re here

Tesla stock doesn’t give us the kind of fireworks we’ve grown used to after the electric vehicle company announced its profits. Tesla has been a bit of a roller coaster over the past few months, but not quite the roller coaster the bears have been hoping for.

There has been a lot of drama surrounding the company and the CEO’s perspective on Bitcoin, but Tesla has continued to deliver solid results. Earlier this month, Tesla delivered a record second quarter delivery result. Then Tesla posted a record pace, recording more than $ 1 billion in profits, with revenue nearly doubling year over year.

TheStreet Quant Ratings classifies Tesla as Hold’em with a rating of C.

Ford engine

Ford shares rose after the automaker beat Wall Street expectations for second-quarter earnings and bolstered its forecast despite a global semiconductor shortage that weighed on the auto industry. Ford has raised its forecast for adjusted pre-tax profit by roughly $ 3.5 billion to between $ 9 billion and $ 10 billion. The company said volume is expected to increase about 30% sequentially from the first to the second half of the year.

TheStreet Quant Ratings classifies Ford as Hold’em with a rating of B-.

Lordstown Engines

Struggling electric truck maker Lordstown Motors (STROLL) – Get a report Hedge fund YA II PN Ltd said Monday that hedge fund YA II PN Ltd had committed to purchase up to $ 400 million of the company’s stock over a three-year period. Lordstown Motors disclosed the deal in a filing with the Securities and Exchange Commission. Under the terms of the deal, YA may receive nearly 35 million shares of Lordstown upon execution of the deal, subject to the approval of Lordstown shareholders, as well as a small discount on the shares. when purchasing them.

TheStreet Quant Ratings has no rating for Lordstown Motors.

General Motors

General Motors shares fell last week when it announced it was recalling the Chevrolet Electric Bolt for the second time in a year. The recall is for the I2017-2019 hatchback model and the move came after two vehicles that had been repaired in a previous recall caught fire. GM will replace vehicle battery modules after finding faults in the battery. The recall applies to 68,667 cars equipped with batteries made by South Korean LG Chem, according to Bloomberg. Other bolts, with different batteries, were not recalled.

TheStreet Quant Ratings classifies GM as a purchase with a B rating.

NIO

NIO said that by the end of 2025, it plans to add 3,700 battery swap stations, giving it 4,000. A swap station is where electric vehicle drivers go. to quickly exchange their batteries for new ones, rather than waiting for a charge. A typical electric car takes around eight hours to charge from empty to full, according to UK charging company Pod Point. The company is making charging stations a priority, co-founder and chairman Qin Lihong told reporters last week.

Carolyn Boroden of Real Money notes bullish technical factors for the company. “I have a simple symmetry setup to consider in NIO,” she wrote.

TheStreet Quant Ratings classifies NIO as a sale with a rating of E +.

Li Auto

Li Auto (TO) – Get a report, the Chinese electric vehicle maker, said second-quarter deliveries more than doubled and exceeded estimates. The Beijing-based company delivered 17,575 vehicles in the quarter, up 166% year-over-year and nearly 40% from the first quarter. The company planned to deliver 14,500 to 15,500 vehicles during the second period.

TheStreet Quant Ratings does not have a rating for Li Auto.

XPeng

Chinese electric vehicle company Xpeng was added to the Hang Seng Composite Index last week. Hang Seng Indexes Company Limited announced that XPeng meets the quick entry rule of various indexes.

TheStreet Quant Ratings does not have a rating for Xpeng.

Connect the power

RBC analyst Joseph Spak launched the cover of hydrogen fuel cell technology company Plug Power (CONNECT) – Get a report with an outperformance rating and a one-year price target of $ 42. Spak wrote that “Plug Power’s valuation is rich, but its long growth track justifies the premium.” He also noted that Plug Power had plenty of growth opportunities, given the Hydrogen Council’s estimates that the hydrogen economy could generate more than $ 2.5 trillion in annual sales by 2050 to immediate industries. associated with hydrogen technology.

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