Business Insights and Market Implications Summary

Ford Stock Performance

• Q1 2025: Ford outperformed Wall Street estimates with a 7% YTD share increase, while S&P 500 remained flat.
• Valuation: P/E ratio of 8.5 (63% discount to S&P 500) and 5.59% dividend yield attract investors.
• Growth Risks: Projected revenue growth of 0.25% (2024-2027) and operating margin of 1.9%.
• Moat Concerns: ROIC of 2.5% below WACC, indicating lack of economic moat.

Rivian Sales Controversy

• Customer Complaint: Promised $500 gear credit and free charging by Rivian sales rep, mistakenly applied to another order.
• Delivery Update: Q1 2025 deliveries dropped 36% year-over-year; revised 2025 forecast: 40,000-46,000 vehicles.
• Product Highlight: R1S Quad-Motor (1,025 HP, 316-mile range, 7,700 lb towing capacity).

Ford vs. Cybertruck Maintenance Costs

• Ford Service Quote: $4,067.90 for Ram 2500 diesel pickup maintenance.
• Cybertruck Advantage: Lower maintenance costs due to fewer moving parts; avoids fuel-related expenses.
• Tesla Model: Direct-to-consumer sales and service via company-owned centers and mobile service.

DS Luxury Expansion in India

• Target: 30 stores by 2027-28, including mono-brand boutiques and multi-brand concepts.
• Market Driver: Increasing demand for high-end fashion and accessories.
• Infrastructure Note: Lack of luxury mall infrastructure in India may influence store locations.

Ford Germany Strike

• Strike Cause: Cologne plant job cuts (14% workforce reduction) due to EV market losses.
• Plant Focus: Produces electric Explorer and Capri models.
• Labor Warning: Potential further walkouts if negotiations fail.

Ford CEO on Tariffs

• Jim Farley’s View: US manufacturing base benefits from tariffs; 85% of parts sourced domestically.
• Challenges: Re-shoring costs add significant expenses; Trump’s China deal deemed cost-effective.
• Trade Climate: Current policies seen as fairest in decades, balancing affordability and domestic production.

NOAA Scientist Departures

• Impact: Senior scientists leaving due to budget cuts under Trump administration.
• Research Impact: Loss of expertise affects salmon and orca research; trust in agency eroded.

Ford Ranger Murder Investigation

• Case Details: South African police seek Ali Mugoya for questioning in Rivonia, Sandton murder involving a Ford Ranger.

Other Business Highlights

• Ford Recall: Navigator and Expedition SUVs recalled due to brake line issue.
• Employment & Markets: April employment up 89k; sharemarket slipped.
• Ford Fest: 7th annual event at Beech Bend Raceway planned.