Ford’s stock has dropped over 40% so far this year. That is about the same as General Motors shares and somewhat less than the 33% fall-off Tesla has seen. Among the reasons for the decline are the lingering supply chain problems and a recession that already may have started.
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Ford has not been as swift to the markets with its F-150 Lightning as investors would like. Ford’s electric pickup should dominate its potentially huge sector of the market and stake a position rivals may not be able to undercut. Ford has millions of F-150s already in the market. Consumers who want to switch to electric vehicles (EVs) will be driven by product loyalty. That means Ford has a huge built-in market. The Lightning has a reasonable base price of less than $40,000 and qualifies for a possible federal tax credit.
The market for electric pickups in the United States almost certainly will reach millions a year in a few years. A consumer move into EVs may be helped by high gas prices, which will not go away this year or next.
Ford has been damaged by worries that the launch of all EVs will be hurt by supply chain hurdles. While this is true, the success of the new F-150 Lightning may be delayed, but not undercut.
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