Ford Gets an EV Win

By Douglas A. McIntyre Published Jan 2, 6:30AM EST

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Ford Motor Co. (NYSE: F | F Price Prediction) has struggled as it has tried to move into the electric vehicle (EV) business. It has pushed back a $12 billion investment in the sector. It has changed the price of its EV flagship, the Ford F-150 Lightning, four times. And it has said EV sales are slow, while its hybrid models have sold better.

Ford got a break. Under the Inflation Reduction Act, certain EVs qualified for a $7,500 tax credit. People could get the money from the government quickly, on what it called a “point of sale” basis. There was a wrinkle. The EVs that would get the credit had to be made in North America. On January 1, 2024, some cars fell off the list because of the calculation used to make that measure. Looking at the new list of qualified vehicles, Inside EV reporters wrote, “What used to be 43 models is now just 19.”

The two Ford F-150 Lightning models stayed on the $7,500 credit list. These are the F-150 Lightning (Extended Range Battery) for model years 2022 to 2024 and the F-150 Lightning (Standard Range Battery) for the same years. While this is a good deal, these two vehicles have prices ranging from $50,000 to $90,000. The base gasoline-powered F-150 has a base price of $34,000.

However …

The credit does not help Ford with common problems across the EV industry. EVs tend to be more expensive than gas-powered vehicles. Americans may not do the math based on the cost of powering a vehicle with gas versus electricity, a vehicle lifetime calculation. (See the 15 worst-selling electric vehicles last year.)

Americans continue to worry about EV range. Most EVs have a range of 300 to 400 miles. Although people rarely drive this far in a single trip, Americans are used to gas-powered vehicles, which often go farther than that.

Many people do not want to look for a charging station. Some people charge their vehicles at home. Finding public charging stations depends largely on population density. However, there are sometimes lines at charging stations, and some charging stations are broken or do not function properly. By contrast, there are 125,000 gas stations in America.

Finally, charging an EV can take over an hour, depending on how far the driver wants to go. Filling a car with gas takes 10 minutes.

Ford got a break. It made its own by building the F-150 Lightning in North America. It just got easier to market the big electric pickup.

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.