Is Ford Falling Behind Tesla in the EV Race?

When Ford Motor Company (NYSE: F) announced its second-quarter results on Thursday evening, at first glance, the news looked encouraging.

The iconic automaker's revenue climbed by a healthy 12%, driven by better-than-expected automotive sales of $42.43 billion (versus estimates for $40.38 billion). On the bottom line, adjusted earnings of $0.72 per share (up from $0.68 per share a year earlier) easily outpaced expectations for an earnings decline to $0.55 per share. Management also raised its full-year outlook for adjusted earnings before interest and taxes (EBIT) to between $11 billion and $12 billion (up from a guidance range of $9 billion to $11 billion before), and for adjusted free cash flow to between $6.5 billion and $7 billion (up from $6 billion previously).

So why, then, did Ford stock fall around 4% on the news? Look no further than its fledgling electric vehicle initiatives.

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Source Fool.com