Ford launches big surprise for electric vehicles in November
Jim Farley has made no secret of his desire to win.
For that (F) – Get a free report The CEO has made it clear that he wants his company to be the best in the electric car sector.
In April, he threw down the gauntlet to Tesla (TSLA) – Get a free reportthe world’s largest EV company, and “anyone who is going to be the best electric car manufacturer in the world.”
“It’s something no one would have thought just two years ago from us,” Farley said;
The company announced on November 30 that it had built the 150,000th Mustang Mach-E since production began nearly two years ago despite supply chain challenges and a rise in raw material prices.
The performance even impressed Tesla (TSLA) ̵[ads1]1; Get a free report CEO Elon Musk who tweeted to his congratulations to Farley and company.
“Thanks, @elonmusk“Farley black. “A lot of work ahead.”
And Ford said on Dec. 1 that it planned to invest an additional $153 million in its UK manufacturing facility to boost EV production.
Ford sold a total of 6,255 vehicles in November, up nearly 103% from a year ago, “making Ford America’s second best-selling electric vehicle brand and manufacturer behind Tesla.”
F-150 Lightning sales totaled 2,062 and since the first sale at the end of May, F-150 Lightning sales totaled 13,258 trucks.
“Ford’s electric vehicle sales expanded by roughly double the overall EV segment in November as Ford prepares to ramp up production next year to meet U.S. demand,” Ford said in a statement.
Ford beat out Hyundai-Kia to take the No. 2 spot for EVs, but it wasn’t all good news, as the company posted a 7.8% decline in total US sales for the month. Retail sales fell 15.8%.
Ford
“Tesla’s position is changing”
Truck sales were down 1.2% and SUV sales were down 15% from a year ago.
And there is still a lot of work to be done in the electric car sector. Tesla reported global deliveries of more than 908,000 electric cars through the third quarter.
But Tesla, which delivered the first of its long-promised electric semi-trucks on Dec. 1, can’t afford to rest on its laurels, according to the S&P Global Mobility Study.
The study said much of Tesla’s stock loss is to electric cars that are available in a more accessible Manufacturer’s Suggested Retail Price (MSRP) — below $50,000, where Tesla is yet to really compete.
“Tesla’s position is changing as new, less expensive alternatives emerge that offer equal or better technology and production construction,” the report said. “Given that consumer choice and consumer interest in electric cars increases, Tesla’s ability to retain a dominant market share will be challenged going forward.”
The study predicted that the number of battery-electric nameplates will grow from 48 currently to 159 by the end of 2025, “at a pace faster than Tesla will be able to add factories.”
Tesla currently has a 65% share of the electric car market, with Ford in second place with 7% market share, Kia next at 5% and Chevrolet and Hyundai in fourth place with 4% each, according to S&P Global Mobility data. The remaining 15% share is shared between all other electric car manufacturers.
Tesla is developing cheaper EVs
During a recent earnings call, Musk confirmed again that the company is working on a vehicle priced lower than the Model 3, “although the timing of market launch is unclear.”
“Tesla’s model lineup is expected to grow to include the Cybertruck in 2023 and eventually a Roadster, but largely the Tesla model lineup in 2025 will be the same models it offers today,” the report said.
“Before you feel too bad for Tesla, though, remember that the brand will continue to see unit sales grow, even as its stock falls,” said Stephanie Brinley, associate director, AutoIntelligence for S&P Global Mobility.
“The electric market in 2022 is a Tesla market, and it will continue to be, as long as competitors are tied down by production capacity,” Brinley said.
