Ford Motor Co.’s plan to ramp up production and sales of battery-powered crossovers and pickups this month is turbocharging the company’s shares and pushing its market capitalization ahead of larger rival General Motors, the second most valuable US vehicle after Tesla. has become a producer.
Stock of the Dearborn, Michigan-based company rose nearly 4% to $25.50 in New York Stock Exchange trading Thursday afternoon, pushing its market cap to more than $100 billion. Shares are up more than 20 per cent in January. GM grew about 3%, raising its valuation to about $91 billion. Tesla, which accounts for only a fraction of the annual vehicle sales of GM or Ford, remains the world’s most valuable automaker, with a market cap above $1 trillion. Tesla fell nearly 4% in Nasdaq trading on Thursday, amid “noise” that its Cybertruck pickup is being delayed.
Ford CEO Jim Farley, who led the company’s battery vehicle plans, said in December 2021 that this fast-selling Mach-E electric crossover, a rival to Tesla’s Model Y, would double production to 80,000 units in 2022. She unexpectedly followed this month Having said that, Ford will increase its annual production target for the new F-150 Lightning pickup to 150,000 units from the previous 80,000-truck target.
“The stock market’s allure to the Ford EV story continues to surprise us,” Adam Jonas, an equity analyst at Morgan Stanley, said in a research note Thursday. “While many OEMs are developing and commercializing a range of EVs today, Ford brought to market a product (the Mustang Mach-E) that consumers saw as a truly viable competitor to the Tesla Model Y. After that, Ford is bringing to market the F-150 Lightning at a $40k price point right out of the gate.”
The company also benefits from Ford’s 12% stake in startup electric truck maker Rivian, Jonas said. And although Ford did not design an entirely new platform for the Lightning, unlike the Rivian or Tesla, modifying its existing F-150 design, “this decision has enabled Ford to move rapidly into the market.” Will it be the most capable EV pickup truck on the road? Probably not… but it is available at least 1 year ahead of the similarly priced (GM Chevrolet) Altium e-Silverado and will impact the stock sooner than its competitors. could.
The Lightning, unveiled in May 2021, starts with a base price of $39,974 (before federal and state incentives) and a driving range of 230 miles per charge for a version aimed at commercial customers. Top-end models capable of 300 miles per charge and more great features will cost more than $90,000. Ford has said it has at least 200,000 reservations for the truck. Tesla CEO Elon Musk also promised that the Cybertruck will have a base price of $39,900 and a range of 250 miles per charge. (Still, no Tesla models, starting from the 2008 Roadster through the 2020 Model Y, have hit the market and sold at the low end of Musk’s initial estimate.)
Tesla removed the reference to Cybertruck’s initial availability being in 2022 on its website late last month, According to media reports,