One part of Joe Biden's Inflation Reduction Act that we haven't really discussed is the massive realignment of EV tax credits. We've talked about a lot of the other factors like green energy and infrastructure, but we haven't added to our EV portfolio since 2021 basically.
That changes today with a small update that has huge implications. The U.S. Department of the Treasury has released a new list of cars that are eligible for the IRA's maximum $7,500 tax credit. There are a lot of losers on this list, and one big winner: Ford Motor Company ($F). Ford now has the most vehicles getting the full tax credit (they've got 6 on the list) with Tesla right behind (they have 5).
Ford has made some truly monumental moves in the EV space in the last quarter, with that alignment culminating in a big "Relaunch" event late last month. Ford is realigning their priorities from top to bottom, organizing their operations into three major verticals.
Right now, their EV operations are coming at steeper and steeper losses which are offset by strong profits and cash flow from traditional vehicles and their credit operations.
And moving forward, Ford is following in Tesla's footsteps by doubling down on subscription services that will fund future operations.
The realignment is great here at Ford, and we're really excited for them to generate gains on the back of becoming an EV powerhouse!
We can tackle this strategy from a lot of different angles, so let's try to focus on the most important: 👇