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Ford (F) Defers Three-Row Electric SUV to Launch Cheaper EVs
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Ford Motor Company (F - Free Report) is shifting its focus from three-row electric SUVs toward the development of affordable electric vehicles (EVs). Per Bloomberg, as affordable China-based EVs start to engulf markets, Ford is deferring its attention from larger EVs to work on a series of cheaper and compact EVs.
The company’s first cheaper and compact electric SUV, due in late 2026, will have a starting price of around $25,000 and target the upcoming entry-level Tesla (TSLA - Free Report) car.
Lithium-iron-phosphate batteries, which are 30% cheaper than standard lithium-ion batteries, are expected to be used in the compact SUV to keep the cost down. Per anonymous Bloomberg sources, other battery chemistries are also under consideration to keep the cost as low as possible. Alan Clarke, former in charge of engineering the Tesla Model Y, is leading Ford’s affordable-EV project. The huge success of Tesla Model Y has made Clarke an obvious choice for a project like this.
The compact e-SUV will be manufactured on a new electric platform. Per Bloomberg Businessweek, Ford’s team of fewer than 100 employees in Irvine, CA, are working on the development of the platform.
Besides the SUV, the platform will also produce a small pickup truck that could be electric equivalent to Maverick. Furthermore, the architecture may pave the way for a specialized ride-hailing vehicle, a concept previously explored by General Motors within its autonomous Cruise division and soon to be introduced by Kia through its PV5 van.
This year, the automaker is set to release a compact electric crossover in Europe with Explorer’s nameplate. It will be built on the same Volkswagen MEB platform as VW ID.4 and Audi Q4 e-tron but will remain an Old World exclusive.
The Zacks Consensus Estimate for MOD’s 2024 sales and earnings per share (EPS) suggests year-over-year growth of 4% and 67.2%, respectively. The EPS estimates for 2024 have improved 22 cents in the past 60 days. The EPS estimates for 2025 have improved 12 cents in the past 30 days.
The Zacks Consensus Estimate for ALSN’s 2024 sales and earnings suggests year-over-year growth of 2.1% and 3.2%, respectively. The EPS estimates for 2024 and 2025 have improved 13 cents and 29 cents, respectively, in the past 30 days.
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Ford (F) Defers Three-Row Electric SUV to Launch Cheaper EVs
Ford Motor Company (F - Free Report) is shifting its focus from three-row electric SUVs toward the development of affordable electric vehicles (EVs). Per Bloomberg, as affordable China-based EVs start to engulf markets, Ford is deferring its attention from larger EVs to work on a series of cheaper and compact EVs.
The company’s first cheaper and compact electric SUV, due in late 2026, will have a starting price of around $25,000 and target the upcoming entry-level Tesla (TSLA - Free Report) car.
Lithium-iron-phosphate batteries, which are 30% cheaper than standard lithium-ion batteries, are expected to be used in the compact SUV to keep the cost down. Per anonymous Bloomberg sources, other battery chemistries are also under consideration to keep the cost as low as possible. Alan Clarke, former in charge of engineering the Tesla Model Y, is leading Ford’s affordable-EV project. The huge success of Tesla Model Y has made Clarke an obvious choice for a project like this.
The compact e-SUV will be manufactured on a new electric platform. Per Bloomberg Businessweek, Ford’s team of fewer than 100 employees in Irvine, CA, are working on the development of the platform.
Besides the SUV, the platform will also produce a small pickup truck that could be electric equivalent to Maverick. Furthermore, the architecture may pave the way for a specialized ride-hailing vehicle, a concept previously explored by General Motors within its autonomous Cruise division and soon to be introduced by Kia through its PV5 van.
This year, the automaker is set to release a compact electric crossover in Europe with Explorer’s nameplate. It will be built on the same Volkswagen MEB platform as VW ID.4 and Audi Q4 e-tron but will remain an Old World exclusive.
Zacks Rank & Other Key Picks
F currently carries a Zacks Rank #2 (Buy).
Some other top-ranked players in the auto space are Modine Manufacturing Company (MOD - Free Report) and Allison Transmission Holdings, Inc. (ALSN - Free Report) , each sporting a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for MOD’s 2024 sales and earnings per share (EPS) suggests year-over-year growth of 4% and 67.2%, respectively. The EPS estimates for 2024 have improved 22 cents in the past 60 days. The EPS estimates for 2025 have improved 12 cents in the past 30 days.
The Zacks Consensus Estimate for ALSN’s 2024 sales and earnings suggests year-over-year growth of 2.1% and 3.2%, respectively. The EPS estimates for 2024 and 2025 have improved 13 cents and 29 cents, respectively, in the past 30 days.