Ford (F) released its third-quarter 2022 earnings report after the stock market close today. The automaker has been battling supply chain bottlenecks all year, warning investors of a hit to its bottom line last month.
According to the automaker’s release, Ford beat Q3 2022 revenue as its electric vehicles continue gaining momentum. In addition, the company says it will be transferring its self-driving tech interests internally after a significant loss on its Argo AI investment.
Ford Q3 2022 earnings preview
Earlier today, we released a preview of Ford’s third-quarter earnings, including what you can expect from Wall St analysts.
Ford forecasted Q3 operating profit between $1.4 billion to $1.7 billion, despite Wall St expectations of around $1.8 billion.
According to estimates, Ford is expected to post rising revenue from last year, between $36 billion and $37 billion. As mentioned in the earlier post, a few things to look out for are comments on Ford’s Rivian stake (almost 10%), full-year guidance, and electric vehicle targets.
Up until now, ford has stuck with its guidance for 2022 despite an expected $1 billion hit in additional supply chain costs.
Ford Q3 2022 financial results and analysis
Just after the market close, Ford reported it had exceeded Wall St revenue expectations despite lingering supply chain issues.
Ford’s revenue came in at $39.4 billion, up 10% from last year. Operating profit of $1.8 million was in line with Wall St. forecasts and above Ford’s recent guidance.
Meanwhile, Ford achieved strong operating cash flow of $3.8 billion in Q3. Adjusted free cash flow of $3.6 billion is pushing the automaker’s FY guidance to between $9.5 billion to $10 billion.
The automaker believes the third quarter set the company up for a solid finish to the year and anticipates 2022 operating profit of around $11.5 billion, up about 15% from previous forecasts.
To reach this, Ford says, it will take about 10% YOY growth in wholesale shipments.
Despite this, Ford posted a net loss of $827 million due to a $2.7 billion loss on its Argo AI investment (more on this below).
Ford’s Q3 2022 earnings results were influenced by two things, according to the automaker:
Supply shortages resulting in around 40,000 vehicles sitting in inventory awaiting parts
A higher-than-expected supplier payment of around $1 billion
The company ended the quarter with $32 billion in cash and $49 billion in liquidity.
Ford’s Q3 electric vehicle progress
Ford says it’s on the “cusp” of an evolution in electric vehicles and that orders continue to grow substantially with unprecedented demand for EVs.
Ford remained the #2 EV brand in the United States through Q3 2022, behind only Tesla. The automaker says it’s still on track to meet its 600,000 EV run rate by the end of 2023 and 2 million by 2026.
In Q3, Ford also set new US dealership requirements for dealers to boost electric vehicle deployment.
Ford broke ground at its BlueOval City in Tennessee, a focal point in Ford’s EV plans which is slated to open in 2025.
The company will add shifts to boost the Mustang Mach-E production capacity while continuing to scale E-Transit production.
In Europe, where Ford has led the commercial segment for seven years, Ford revealed the E-Transit custom.
To meet these targets, Ford continues securing raw materials and battery capacity.
Ford’s investments in Rivian remained under $1 billion in the third quarter.
Ford expects climate initiatives in the United States to boost demand while offsetting its investments to accelerate EV production capabilities. The automaker says it believes it will meet the requirements for certain Mach-E and F-150 lighting models to receive the federal EV tax credit.
Ford electric vehicle lineup Source: Ford
Ford shifts self-driving tech plans internally
During Q3, Ford decided to shift its spending on L4 advanced driver assistance systems being developed by Argo AI to focus on the internal development of L2/L3 technology.
As Argo has failed to attract investors, Ford has posted a substantial loss ($2.7 billion pretax) on its investment in the company. When Ford first invested in Argo, it planned to introduce L4 technology by 2021. However, as Ford’s CEO, Jim Farley, states:
But things have changed, and there’s a huge opportunity right now for Ford to give time – the most valuable commodity in modern life – back to millions of customers while they’re in their vehicles.
Before adding:
It’s mission-critical for Ford to develop great and differentiated L2+ and L3 applications that at the same time make transportation even safer.
Ford’s chief also mentioned they would hire talented engineers from Argo as the company dissolves to accelerate internal development. The company says the decision comes as it sees rising interest and margins in other segments, such as Ford Pro and electric vehicles. Although the company is not capital constrained, it will use the investments to drive strategic growth in these areas.
Other observations from Ford’s third-quarter results
Ford’s auto market share grew in North America to 12.8% (+1.7% YOY) and in Europe to 6.6% (up 0.4% YOY).
In China, Ford’s market share dropped 0.5% YOY to 2%. The company also noted a quarterly loss due to investments in electric vehicles in the region.
Ford Pro, the automaker’s portfolio of business services and products, continues gaining momentum, with the company’s electric commercial van, the E-Transit holding a solid lead in full-size commercial trucks and vans in the United States (90%) and Europe.
Starting next year, Ford will report in three business segments, including Ford Model e (for electric vehicles), Ford Pro (its business products and services), and Ford Blue (ICE vehicles) as the company gets ready to accelerate EV sales.
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The HD arm of Hyundai has just released the first official images of the new, battery-electric HX19e mini excavator – the first ever production electric excavator from the global South Korean manufacturer.
The HX19e will be the first all-electric asset to enter series production at Hyundai Construction Equipment, with manufacturing set to begin this April.
The new HX19e will be offered with either a 32 kWh or 40 kWh li-ion battery pack – which, according to Hyundai, is nearly double the capacity offered by its nearest competitor (pretty sure that’s not correct –Ed.). The 40kWh battery allows for up to 6 hours and 40 minutes of continuous operation between charges, with a break time top-up on delivering full shift usability.
Those batteries send power to a 13 kW (17.5 hp) electric motor that drives an open-center hydraulic system. Hyundai claims the system delivers job site performance that is at least equal to, if not better than, that of its diesel-powered HX19A mini excavator.
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To that end, the Hyundai XH19e offers the same 16 kN bucket breakout force and a slightly higher 9.4 kN (just over 2100 lb-ft) dipper arm breakout force. The maximum digging depth is 7.6 feet, and the maximum digging reach is 12.9 feet. Hyundai will offer the new electric excavator with just four selectable options:
enclosed cab vs. open canopy
32 or 40 kWh battery capacity
All HX19es will ship with a high standard specification that includes safety valves on the main boom, dipper arm, and dozer blade hydraulic cylinders, as well as two-way auxiliary hydraulic piping allows the machine to be used with a range of commercially available implements. The hydraulics needed to operate a quick coupler, LED booms lights, rotating beacons, an MP3 radio with USB connectivity, and an operator’s seat with mechanical suspension are also standard.
HX19e electric mini excavator; via Hyundai Construction Equipment.
The ability to operate indoors, underground, or in environments like zoos and hospitals were keeping noise levels down is of critical importance to the success of an operation makes electric equipment assets like these coming from Hyundai a must-have for fleet operators and construction crews that hope to remain competitive in the face of ever-increasing noise regulations. The fact that these are cleaner, safer, and cheaper to operate is just icing on that cake.
With the Trump Administration fully in power and Federal electric vehicle incentives apparently on the chopping block, many fleet buyers are second-guessing the push to electrify their fleets. To help ease their minds, Harbinger is launching the IRA Risk-Free Guarantee, promising to cover the cost of anticipated IRA credits if the rebate goes away.
In the case of a Harbinger S524 Class 5 chassis with a 140 kWh battery capacity with an MSRP of $103,200, the company will offer an IRA Risk-Free Guarantee credit of $12,900 at the time of purchase, bringing initial cost down to $90,300. This matches the typical selling price of an equivalent Freightliner MT-45 diesel medium-duty chassis.
“We created (the IRA Risk-Free Guarantee) program to eliminate the financial uncertainty for customers who are interested in EV adoption, but are concerned about the future of the IRA tax credit,” said John Harris, Co-founder and CEO of Harbinger. “For electric vehicles to go mainstream, they must be cost-competitive with diesel vehicles. While the IRA tax credit helps bridge that gap, we remain committed to price parity with diesel, even if the credit disappears. Our vertically integrated approach enables us to keep costs low, shields us from tariff volatility, and ensures long-term price stability for our customers.”
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Harbinger recently revealed a book of business consisting of 4,690 binding orders. Those orders are valued at approximately $500 million, and fueled a $100 million Series B raise.
Electrek’s Take
Harbinger truck charging; via Harbinger.
One of the most frequent criticisms of electric vehicle incentives is that they encourage manufacturers and dealers to artificially inflate the price of their vehicles. In their heads, I imagine the scenario goes something like this:
you looked at a used Nissan LEAF on a dealer’s lot priced at $14,995
a new bill passes and the state issues a $2500 used EV rebate
you decide to go back to the dealer and buy the car
once you arrive, you find that the price is now $16,995
While it’s commendable that Harbinger is taking action and sacrificing some of its profits to keep the business growing and the overall cause of fleet electrification moving forward, one has to wonder how they can “suddenly” afford to offer these massive discounts in lieu of government incentives – and how many other EV brands could probably afford to do the same.
Whoever is left at Nikola after the fledgling truck-maker filed for Chapter 11 bankruptcy protection last month is probably having a worse week than you – the company issued a recall with the NHTSA for 95 of its hydrogen fuel cell-powered semi trucks.
That complaint seems to have led to the posthumous recall of 95 (out of about 200) Nikola-built electric semi trucks.
The latest HFCEV recall is on top of the 2023 battery recall that impacted nearly all of Nikola’s deployed BEV fleet. Clean Trucking is citing a January 31, 2025 report from the NHTSA revealing that, as of the end of 2024, Nikola had yet to complete repairs for 98 of its affected BEVs. The ultimate fate of those vehicles remains unclear.
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Electrek’s Take
Image via Coyote Container.
I’ve received a few messages complaining that I “haven’t covered” the Nikola bankruptcy – which is bananas, since I reported that it was coming five weeks before it happened and there was no “new” information presented in the interim (he said, defensively).
Still, it’s worth looking back on Nikola’s headlong dive into the empty swimming pool of hydrogen, and remind ourselves that even its most enthusiastic early adopters were suffering.
“The truck costs five to ten times that of a standard Class 8 drayage [truck],” explained William Hall, Managing Member and Founder of Coyote Container. “On top of that, you pay five to ten times the Federal Excise Tax (FET) and local sales tax, [which comes to] roughly 22%. If you add the 10% reserve not covered by any voucher program, you are at 32%. Thirty-two percent of $500,000 is $160,000 for the trucker to somehow pay [out of pocket].”
After several failures that left his Nikola trucks stranded on the side of the road, the first such incident happening with just 900 miles on the truck’s odometer, a NHTSA complaint was filed. It’s not clear if it was Hall’s complaint, but the complaint seems to address his concerns, below.