Ford (F) stock plunged on Wednesday. It ended 6% down, at $6.81 per share. In the pre-market today, Ford shares are down as well.
One of the largest U.S. automakers Ford Motor Company (NYSE: F) is planning to delay the debut its all-electric version of F-150 pickup and the EV Transit van. As Ford CEO Jim Farley said on CNBC’s “Squawk on the Street”, both the vehicles would arrive “within 24 months,” or in mid-2022. Amid the news, Ford (F) stock plummeted at close on Wednesday.
The details on all-electric F-150 pickup and Transit Van have been vague, as Ford provided little data about the vehicles. However, some facts are known. It is clear that F-150 will be built in house by Ford rather than with the help of Rivian, the EV startup Ford invested in. In 2019, after Ford first confirmed their plans to build an all-electric pickup, there appeared a video that shows the F-150 electric prototype. There, the vehicle towed a train weighing over 1 million pounds.
Jim Farley said:
“We are number one in the pickup and the van market in Western Europe and the US, and this is our chance. We are electrifying and we’re a brand people trust.”
Rivals to Ford F-150 Pickup and Transit Van
However, the timing may place Ford behind General Motors Company (NYSE: GM). The latter announced their plans to introduce an electric truck last December. According to General Motors, it will come in late 2021.
Another carmaker that is planning to enter the EV truck and van market is Rivian. The company will start deliveries of its R1T battery-powered pickup in 2021.
Tesla Inc (NASDAQ: TSLA) will introduce its Cybertruck EV pickup in 2021 as well.
Currently, Ford is preparing to launch its four key vehicle models: 202 F-150, Mustang Mach-E, Bronco Sport SUVs, and Bronco. The first one will be unveiled on July 25. Hopefully, it will give us an idea of the design of the electric version coming in 2022.
Why Ford (F) Stock Plunged
Most analysts see the upcoming launch of four models as a desperate move to save Ford from the market crisis. The COVID-19 pandemic left most businesses in need of a fast cure to sustain operations, and Ford is no exception. Now, there are concerns about the potential effects of rising numbers of COVID-19 cases in several parts of the U.S. Therefore, shares of many automakers were trading lower yesterday.
Ford stock ended 6% down on Wednesday, at $6.81 per share. The day’s range f F stock varied from $6.77 to $7.34. After hours, it slightly jumped, adding 0.29% to $6.83. In the pre-market today, Ford shares are further down, at $6.48. Ford’s market cap is $28.79 billion, the stock is 26.77% down year-to-date.
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Daria is an economic student interested in the development of modern technologies. She is eager to know as much as possible about cryptos as she believes they can change our view on finance and the world in general.