We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Is Ford Trading EV Delays for Long-Term Gains in Affordable Models?
Read MoreHide Full Article
Key Takeaways
Ford pushes back its new electric pickup and E-Transit van launches to 2028.
Shift focuses on a new platform for compact, affordable EVs, including a 2027 small pickup.
CEO cites Chinese EV makers' low-cost edge as key competition in shaping Ford's strategy.
U.S. legacy automaker Ford (F - Free Report) is pushing back two major electric vehicle (EV) launches as it shifts focus to smaller, cheaper EVs that can turn a profit.
The next-generation full-size electric pickup, known internally as “Project T3” and set to replace the F-150 Lightning, will now debut in 2028. That’s a few months later than the previous 2027 target — and far from its original plan to hit the market this year. The truck will be built at Ford’s BlueOval City plant in Tennessee, with prototypes still expected in 2027.
Ford’s next-generation E-Transit electric van has also been delayed from 2026 to 2028. Planned for production at the Ohio Assembly Plant, the van was first announced in 2022 with a mid-decade launch in mind.
These delays mark another adjustment to Ford’s EV strategy. Instead of pushing out large, high-priced EVs, the automaker is investing in a new platform for compact, affordable electric vehicles. The platform is expected to underpin several models, including a small pickup truck due in 2027. More details on this are expected to be announced tomorrow.
Ford’s CEO Jim Farley has pointed to Chinese automakers as the company’s main EV competitors, noting their ability to produce stylish, high-quality electric cars at inexpensive price points. To stay competitive, Ford is aiming to reduce costs with streamlined platforms and lower-cost batteries.
Ford’s current EV lineup — Mustang Mach-E, F-150 Lightning and E-Transit — remains in place, but the next-gen models will arrive later than planned. The bet now is that smaller, more affordable EVs will help the brand stay relevant and profitable in a competitive global market.
Whether this pivot works will depend on how fast Ford can bring its affordable EVs to market — and how well they stack up against the offerings from China and other competitors. The delays in its flagship EV truck and van could concern some customers, but they also give Ford breathing room to focus on profitability and cost leadership.
The Zacks Rundown on Ford
Shares of Ford have increased around 15% over the past year, underperforming the industry as well as its closest peer General Motors (GM - Free Report) but outperforming the Italian American carmaker Stellantis (STLA - Free Report) . While shares of General Motors have gained 24.6%, Stellantis stock has declined 38% over the same timeframe.
Image Source: Zacks Investment Research
From a valuation standpoint, F trades at a forward price-to-earnings ratio of 0.28, below the industry average. It carries a Value Score of A. Meanwhile, General Motors and Stellantis trade at just 0.29X and 0.16X, respectively.
Image Source: Zacks Investment Research
See how the Zacks Consensus Estimate for Ford’s earnings has been revised over the past 60 days.
Image: Bigstock
Is Ford Trading EV Delays for Long-Term Gains in Affordable Models?
Key Takeaways
U.S. legacy automaker Ford (F - Free Report) is pushing back two major electric vehicle (EV) launches as it shifts focus to smaller, cheaper EVs that can turn a profit.
The next-generation full-size electric pickup, known internally as “Project T3” and set to replace the F-150 Lightning, will now debut in 2028. That’s a few months later than the previous 2027 target — and far from its original plan to hit the market this year. The truck will be built at Ford’s BlueOval City plant in Tennessee, with prototypes still expected in 2027.
Ford’s next-generation E-Transit electric van has also been delayed from 2026 to 2028. Planned for production at the Ohio Assembly Plant, the van was first announced in 2022 with a mid-decade launch in mind.
These delays mark another adjustment to Ford’s EV strategy. Instead of pushing out large, high-priced EVs, the automaker is investing in a new platform for compact, affordable electric vehicles. The platform is expected to underpin several models, including a small pickup truck due in 2027. More details on this are expected to be announced tomorrow.
Ford’s CEO Jim Farley has pointed to Chinese automakers as the company’s main EV competitors, noting their ability to produce stylish, high-quality electric cars at inexpensive price points. To stay competitive, Ford is aiming to reduce costs with streamlined platforms and lower-cost batteries.
Ford’s current EV lineup — Mustang Mach-E, F-150 Lightning and E-Transit — remains in place, but the next-gen models will arrive later than planned. The bet now is that smaller, more affordable EVs will help the brand stay relevant and profitable in a competitive global market.
Whether this pivot works will depend on how fast Ford can bring its affordable EVs to market — and how well they stack up against the offerings from China and other competitors. The delays in its flagship EV truck and van could concern some customers, but they also give Ford breathing room to focus on profitability and cost leadership.
The Zacks Rundown on Ford
Shares of Ford have increased around 15% over the past year, underperforming the industry as well as its closest peer General Motors (GM - Free Report) but outperforming the Italian American carmaker Stellantis (STLA - Free Report) . While shares of General Motors have gained 24.6%, Stellantis stock has declined 38% over the same timeframe.
From a valuation standpoint, F trades at a forward price-to-earnings ratio of 0.28, below the industry average. It carries a Value Score of A. Meanwhile, General Motors and Stellantis trade at just 0.29X and 0.16X, respectively.
See how the Zacks Consensus Estimate for Ford’s earnings has been revised over the past 60 days.
F stock currently carries a Zacks Rank #3 (Hold).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here