Ford’s stock has dropped over 40% so far this year. That is about the same as General Motors shares and somewhat less than the 33% fall-off Tesla has seen. Among the reasons for the decline are the lingering supply chain problems and a recession that already may have started.
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Ford has not been as swift to the markets with its F-150 Lightning as investors would like. Ford’s electric pickup should dominate its potentially huge sector of the market and stake a position rivals may not be able to undercut. Ford has millions of F-150s already in the market. Consumers who want to switch to electric vehicles (EVs) will be driven by product loyalty. That means Ford has a huge built-in market. The Lightning has a reasonable base price of less than $40,000 and qualifies for a possible federal tax credit.
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The market for electric pickups in the United States almost certainly will reach millions a year in a few years. A consumer move into EVs may be helped by high gas prices, which will not go away this year or next.
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Ford has been damaged by worries that the launch of all EVs will be hurt by supply chain hurdles. While this is true, the success of the new F-150 Lightning may be delayed, but not undercut.
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Ford’s shares have long depended on the success of the F-150, and that will not end. The Lightning is why the stock price will turn around.
Ford Stock Drop to Be Reversed by New F-150 Lightning
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Douglas A. McIntyre is the co-founder, chief executive officer and editor in chief of 24/7 Wall St. and 24/7 Tempo. He has held these jobs since 2006.
McIntyre has written thousands of articles for 24/7 Wall St. He is an expert on corporate finance, the automotive industry, media companies and international finance. He has edited articles on national demographics, sports, personal income and travel.
His work has been quoted or mentioned in The New York Times, The Wall Street Journal, Los Angeles Times, The Washington Post, NBC News, Time, The New Yorker, HuffPost USA Today, Business Insider, Yahoo, AOL, MarketWatch, The Atlantic, Bloomberg, New York Post, Chicago Tribune, Forbes, The Guardian and many other major publications. McIntyre has been a guest on CNBC, the BBC and television and radio stations across the country.
A magna cum laude graduate of Harvard College, McIntyre also was president of The Harvard Advocate. Founded in 1866, the Advocate is the oldest college publication in the United States.
TheStreet.com, Comps.com and Edgar Online are some of the public companies for which McIntyre served on the board of directors. He was a Vicinity Corporation board member when the company was sold to Microsoft in 2002. He served on the audit committees of some of these companies.
McIntyre has been the CEO of FutureSource, a provider of trading terminals and news to commodities and futures traders. He was president of Switchboard, the online phone directory company. He served as chairman and CEO of On2 Technologies, the video compression company that provided video compression software for Adobe’s Flash. Google bought On2 in 2009.
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