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Ford widens slide amid threat to its all-electric truck, growing EV inventory| Investor’s Business Daily




Ford Motor (F) cut prices for its F-150 Lightning EV truck the following Monday Tesla (TSLA) produced its first Cybertruck and hinted at competitive pricing for its electric pickup truck. Ford shares extended the decline on Tuesday, while Tesla shares retreated.

New and used car prices are under pressure in 2023 due to rising inventories and more expensive car loans. In June, industry-wide inventories of electric vehicles rose, ending the month with twice as many days’ supply as new vehicles overall, a Cox Automotive analysis showed last week.




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Ford cuts Lightning EV prices

On Monday, Ford cut the price of its all-electric F-150 Lightning pickup truck by $6,000-$10,000, citing improved capacity and lower battery costs.

After the cuts, Lightning pricing will start at $50,000 plus destination charges. The company had raised the prices of the Lightning EV several times after its 2021 debut, due to supply issues and higher battery costs.

The Lightning price cut comes just two days after Tesla said it produced the first Cybertruck in Austin, Texas.

Tesla has not disclosed Cybertruck prices. But a tweet Monday from Tesla CEO Elon Musk said: “The Ford Lightning is a good vehicle, just a bit expensive, especially given the high interest rates these days for all types of loans.” Some people have taken that to mean the Cybertruck will be cheaper than its Lightning competitor, though that’s not clear.

Investors also want to know when Tesla will start mass producing and delivering the long-delayed Cybertruck. Meanwhile, some analysts worry about Tesla’s overcapacity issues in the months ahead.

Ford had cut the prices of its Mustang Mach-E crossover in May for the second time this year. It followed a series of price cuts from Tesla.


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Ford Stock, CRMT Stock

In stock market trading on Monday, the Ford share fell 5.9% to 14.09. Shares lost another 0.4% on Tuesday, extending the decline to a fifth straight day. Tesla shares fell 1.2% on Tuesday after falling 3.2% on Monday.

Several US EV stocks, both legacy auto giants transitioning to electric vehicles and startups, rose on Tuesday.

General Motors (GM) rose 0.6%. Among EV startups, Rivian (Torn), Sure (LCID) and Canoo (GOEV) rose.

Fisherman (FSR) relieved a fraction. Nicholas (NKLA) rose nearly 14% Tuesday, extending gains after entering into a partnership with BayoTech, which will buy 50 Nikola fuel cell rigs.

A “winner” in the midst of the car industry’s turmoil

On Monday, used car dealer America’s Car-Mart (CRMT) jumped on an analyst upgrade.

Stephens analyst Vincent Caintic upgraded America’s Car-Mart to overweight from equal weight, saying it is “a winner whether the industry turmoil continues or begins to recover.”

The Stephens analyst also raised his price target on CRMT stock to $135. That’s nearly double his previous target of $70, and 15% above where the stock traded on Monday.

America’s Car-Mart says it’s helping credit-challenged customers get into affordable, high-quality used cars. The share belongs to the small-cap Russell 2000 index.

Car-Mart shares jumped 15.3% to 119.52 on Monday. CRMT stock rose another 2.1% on Tuesday and is up more than 60% from its March low.

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