Ford Sticks With Gas Powered Car

By Douglas A. McIntyre Published Sep 19, 10:30AM EDT

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Ford Sticks With Gas Powered Car — © jetcityimage / iStock Editorial via Getty Images

Ford, which wants to stamp itself as a world leader in EVs, says its fleet will be all electric by early next decade. It wants to bury Tesla in the process. Is it any wonder? Ford’s market cap is $59 billion. Tesla’s is $951 billion.

Along with every other global manufacturer, Ford is desperate to fill that market value gap. Therefore, it is odd that one of Ford’s most heavily promoted models for next year is the V8 2024 Mustang, the latest version of a car that was first launched in the early 1960s. The nearly 500 HP car will eat through gas at a remarkable rate.
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The other Ford model that carries the Mustang badge is, ironically, the Mustang Mach-E, an all electric crossover. Ford management supposed the Mustang brand would help sell the new car. It appears to have worked. The Mach-E is sold out.

The new gas powered Mustang will go on sale in the summer of 2023. Ford has made a large mistake by putting the car at the center of its highly promoted vehicles for next year.

Ford’s remodeling of itself as an EV powerhouse has been driven so far by the Mach-E and the new Ford F-150 Lightning full sized pickup The F-150 has the advantage that over 6 million of these have been sold in the last decade. This means the EV model has a massive potential pool of new buyers.

Ford has stumbled with its EV introduction. Because of the costs of components for its two Flagship EVs, it has had to raise the price of the models by well over $5,000. This will push some people away from purchases of the crossover and full sized pickup that are so expensive. Consumers may opt for gas powered versions as they wait for prices to come down – if they do. Ford has made the decision it will not lose money on the Mach-E or Lightening, which will likely erode sales.
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Ford has confused the consumer public. Why promote a gas powered car at all?

About the Author Douglas A. McIntyre →

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.