Todd Gordon Says This Is What Ford Needs To Do To Lead The EV Space

On CNBC's "Trading Nation," Todd Gordon of Inside Edge Capital Management said auto stocks are on the move.

Ford Motor Company F wants to lead America’s shift to electric vehicles. Gordon mentioned the company has plans to invest $7 billion to build a mega campus in Tennessee to manufacture F-150 and twin battery plants in Kentucky.

General Motors Company GM also aspires to be the EV leader soon.

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Ford has been underperforming their competitors, Gordon pointed out. Through the pandemic, the company’s revenues were hit more than its competitors and unit sales were down 26%. Ford has also taken huge debt, taking their debt-to-equity ratio to 4.2, versus GM’s 2.14. Gordon highlighted that Ford and GM stocks have been trading very tightly with each other.

Orders for Ford’s Bronco were up 69% month-on-month in August. Gordon believes they could gain share in the SUV market. However, the issue with Bronco deliveries is not a chip issue but a hard-top and soft-top issue, he noted.

In the EV segment, Ford recorded a 67% increase year on year. Gordon believes the company should unwind some longer-term debt and fill some unfilled orders.