Ford’s Amped-Up Electric Vehicle Strategy Boosts Shares, Tops GM’s Market Cap

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The carmaker’s plan to accelerate production of its electric crossover and pickup have lifted its shares more than 20% in January.

by saying Ford would also boost its annual production target for the new F-150 Lightning pickup to 150,000 units from a previous 80,000-truck goal.

“The stock market’s attraction to the Ford EV story continues to take us by surprise,” Adam Jonas, an equity analyst at Morgan Stanley, said in a research note Thursday. “While there are many OEMs developing and commercializing a range of EVs today, Ford brought to market a product that consumers viewed as a truly viable competitor to the Tesla Model Y. Quickly following that, Ford is bringing to market the F-150 Lightning at a sub $40k price point right out of the gate.

Ford’s 12% stake in startup electric truckmaker Rivian also benefits the company, Jonas said. And though unlike either Rivian or Tesla, Ford didn’t design a completely new platform for the Lightning, modifying its existing F-150 design, “This decision has enabled Ford to move FASTER to market. Will it be the most capable EV pickup truck on the road? Maybe not . . .

The Lightning, unveiled in May 2021, starts with a base price of $39,974 and driving range of 230 miles per charge for a version aimed at commercial customers. Top-end models capable of going 300 miles per charge and more luxurious 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 would have a base price of $39,900 and a range of 250 miles per charge.

Tesla late last month removed a reference on its website to Cybertruck’s initial availability being in 2022,

 

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