How to treat Ford 10 loss of $2 billion?

Ford released its own financial report. From the latest financial report, we can see that Ford lost as much as $2 billion in the past ten years. As soon as this financial report was released, it immediately attracted the attention of the investment community, which directly led to the decline of Ford stock 10%. Today, I will discuss with you why Ford's stock is like this.

First, sales declined.

In fact, Ford Motor Company announced its car sales in its previous financial report. Last year, their car sales were only 89,000 vehicles, which was 34.9% lower than before, and this trend is gradually accelerating. So at that time, Ford Motor Company directly expressed that it was not very optimistic about the future sales forecast. The financial report of this quarter was released, which immediately confirmed Ford's original forecast.

Second, the impact of the COVID-19 epidemic.

In fact, in addition to the current decline in sales, it is also related to the COVID-19 epidemic. Before that, Ford turned to the outside world for help, hoping to get enough car chips for their daily production. However, due to the impact of the COVID-19 epidemic, chip development in all regions has been affected, which directly leads to the automobile industry having to buy more expensive chips if it wants to produce cars. This not only increases their production costs, but also limits the development of their models. Ford said at the time that it might develop some cars with higher value.

Third, how should Ford respond now?

In fact, Ford has anticipated this situation, so in the last year, Ford has started its own credit line and obtained some low-interest loans. Moreover, in order to reduce their operating costs, they also fired some employees, but at the same time they also suspended the research and development of intelligent driving.