Ford Becomes an EV Growth Stock in 2022
Michael Spencer
A.I. Writer, researcher and curator - full-time Newsletter publication manager.
Move Over Rivian, Ford has a Pickup EV Truck as Well
I really like this story. Ford’s F-150 Lightning might be a huge hit. But Ford becoming an EV Growth stock? Who saw that coming? I sure didn't.
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In 2022, traditional auto-makers seem to be catching up to Tesla and EV startups in how they will scale electric vehicles. The case of Ford is an important one here. Demand for their upcoming electric F-150 Lightning pickup truck is so high, they have had to increase production capacity substantially.
Ford’s stock was $4 in 2020, today it’s reached $24. Car companies that show EV sales momentum really become part of the Tesla EV Growth crowd as the industry pivots.
What’s clear in 2022 is how serious traditional car makers are in ramping up their EV production.
Ford on Tuesday said it plans to nearly double annual production capacity of its upcoming electric F-150 pickup to 150,000 vehicles per year at a plant in Michigan. Tesla delivered 936,172 electric vehicles in 2021 and shows no sign of slowing down.
The increase is a positive sign of demand for the F-150 Lightning as well as electric vehicles in general but also shows Ford significantly underestimated demand for the truck, causing it to now scramble to boost manufacturing of it.
Tesla deliveries amounted to 308,600 electric cars in the fourth quarter and full-year deliveries amounted to 936,172 vehicles. Tesla’s stock is up 74% in the last 6 months, while Ford’s stock is up nearly 68%.
How crazy is Ford’s rejuvenation as an EV maker however? Since auto veteran Jim Farley took the CEO helm more than 15 months ago, the stock is up by more than 200%.
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With Woodstocks and high-growth tech correcting, the EV market shows no sign of slowing down for equities. However startups like Rivian, Lucid, Nio, Xpeng and others are showing some signs of correcting slightly.
The American dream of EV makers producing electric cars at scale seems to be near. The F-150 Lightning trucks, which will have a base price of $39,974 before tax incentives are applied and not including the destination fee, will be produced at the Rouge Electric Vehicle Center in Dearborn, Michigan.
Ford has already received nearly 200,000 reservations — essentially refundable placeholders before buying the vehicle — for the new electric pickup truck.
Ford said it will be implementing a “wave-by-wave reservation process,” with reservation holders being asked to watch for an invitation via email from Ford or to log into their Ford.com account over the next few months to place an order for their vehicle.
Automotive partnerships are a hot sector with the chip shortage and incredible competition coming to the EV industry. Ford is working with key suppliers and its own manufacturing facilities Rawsonville Components Plant and Van Dyke Electric Powertrain Center to find ways to increase capacity of parts needed for EVs, including battery cells, battery trays and electric drive systems.
Tesla’s enthusiasm on the equity market spills over at regular intervals to others in the EV sector as we have seen with Rivian, Lucid and others. Investors have rewarded the new direction under auto veteran Jim Farley, who took the helm in October 2020 after the Ford board ousted industry outsider Jim Hackett. It pays to pivot to EV, at least for shareholder value.
Toyota’s EV plans ?are slowing getting bigger as well in 2022. The company is promising to spend over $17 billion to roll out 30 EVs by 2030. Those deeper pockets will mean the Teslas’ of this world will have real competition soon enough.
Ford has been the number one trending ticker on many trading apps in recent days on the F-150 Lightning production news. With Nio and Lucid expanding in Europe, things are about to get interesting.
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Ford $F is up 17% in the last 5 days at the time of writing.
Open Innovation Product Developer - InventRight Member
2 年That truck would be even more awesome with my rack system on board ??
Computer Network Administrator; Information System management, Cloud Computing, Systems and Application; Marine & Aviation Insurance Risks management and CyberSecurity Management at NEM Insurance Plc.
2 年Those companies leading in the EV production now are into the politics of disruption in order to dis-encourage starters in the future of vehicle. Just as buyers are now placing order in demand for the new electric pickup truck, it will definitely affect demand and supply chain in chips production. The auto veteran Jim Farley who took over the CEO of Ford some months ago and having known that he is a visionary leader, Ford will be at the top of electric cars in some years ahead.
A.I. Writer, researcher and curator - full-time Newsletter publication manager.
2 年Traditional car makers such as Ford, GM, VW and others are pivoting into EVs to disrupt the EV startups before they can dominate market share.