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As electric vehicles and autonomous driving software proliferate, automakers are trying hard to convince investors they are more than just car companies. That, of course, requires selling services as well as vehicles.
Ford Motor
(ticker: F) is one of those automakers with bigger aspirations. Tuesday morning, Ford’s commercial division, called Ford Pro, announced new EV charging solutions for business customers. It is launching new alternating-current chargers it says are easier to service and offer better connectivity and over-the-air software updates.
AC chargers aren’t the fastest chargers, but commercial customers don’t typically rely on more expensive direct-current, or DC, fast chargers. They can recharge delivery and utility vehicles overnight.
“We’re committed to helping businesses make the transition to electric easy with a single-minded focus on curated commercial charging solutions,” said Ford Pro CEO Ted Cannis in a news release. ‘” With our tailored EV consulting and portfolio of charging hardware and software solutions, we can design, implement, and
operate solutions for Ford and other brands that will last for many years to come.”
Ford gets paid for its charging services by subscription. At the end of the second quarter, the business provided software and services for about 4,200 chargers, 22% more than at the end of the first quarter.
Tesla
(TSLA) recently opened up investors’ eyes to the opportunity EV charging represents when it signed agreements with Ford and other automakers to allow non-Tesla EVs to charge at Tesla supercharging locations. Tesla operates the U.S.’s largest network of DC fast-charging stations.
Ford didn’t immediately respond to a request for comment about whether it owns any of the 4,200 chargers.
For now, Ford is being treated like an automaker stock. Coming into Tuesday trading, shares were down about 23% over the past 12 months, while the
S&P 500
had gained about 10% over the same span. Investors are worried about the impact of high interest rates on car demand and the impact of falling prices on profit margins.
Ford stock trades for about 6.2 times the per-share earnings expected for 2024. The S&P trades for about 17.4 times.
The Pro division is still mainly a supplier of vehicles to commercial businesses, but it makes money. Pro reported second-quarter operating profit of $2.4 billion from sales of $15.6 billion while delivering 365,000 units.
In early Tuesday trading, Ford stock was up 0.3%, while the S&P 500 and
Dow Jones Industrial Average
has risen 0.2%.
Write to Al Root at [email protected]
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