Ford Motor Co F CEO Jim Farley has urged investors to shift their focus from Tesla Inc TSLA to Ford’s “Pro” unit, which he believes is the future of the auto industry.

Farley’s Perspective: Farley made the remarks at a Wolfe Research conference on Thursday, emphasizing that investors should pay more attention to Ford’s “Pro” fleet business. This unit includes the company’s traditional fleet and commercial operations, along with emerging telematics and logistics for business customers, as reported by CNBC.

The Pro unit’s pretax earnings are expected to rise to between $8 billion and $9 billion this year, surpassing the earnings projections for Ford’s “Blue” traditional business of about $7 billion to $7.5 billion and the expected losses in its Model e EV business of $5 billion to $5.5 billion.

Farley compared the Pro unit to Deere & Co DE seven years ago, noting that the farm equipment maker’s stock has since increased about 235%. He also emphasized that Ford Pro is undervalued within the automaker.

“If you’re looking for the future of the automotive industry, stop looking at FSD [Full Self-Driving] and Tesla. Look at Ford Pro. It’s got half a million subscribers with 50% gross margin,” Farley said.

Analyst’s Insight: Morgan Stanley’s Adam Jonas likened Ford Pro to the company’s “Ferrari,” citing the undervaluation of Ferrari before its spin-off from Fiat Chrysler in 2016. He highlighted Ford Pro’s potential as a lucrative business during Ford’s recent earnings call. “Now Ford has a Ferrari, it’s called Ford Pro. And I think we agree, people are ignoring the cash cow,” he said.

The Implications: Farley’s comments come amid a series of significant developments at Ford. Earlier this month, he announced that the company’s next generation of EV products is expected to be profitable within the first 12 months of their launch. This is part of Ford’s broader restructuring and growth plan, in which the Pro unit plays a pivotal role.

However, Ford’s journey to this point has not been without its challenges. The company has faced strikes and higher wages for its workers, which could impact margins and future investments. Additionally, Ford is delaying or cutting spending by billions of dollars on EVs amid slower-than-expected adoption of its current models and significant losses on its electric vehicles.

Farley’s comments come in the wake of Ford’s impressive 2023 sales figures, acknowledged by Tesla CEO Elon Musk despite their fierce rivalry in the U.S. electric vehicle market. In 2023, Ford achieved notable success by selling 72,608 EVs in the U.S., marking an almost 18% annual increase and securing the position as the second best-selling EV brand, trailing closely behind Tesla.