(The Motley Fool) – Ford Motor (NYSE: F) wasn’t the first automaker to reveal a battery-electric pickup truck. And the Ford F-150 Lightning isn’t the company’s first foray into electric vehicles (EVs).
Nevertheless, the recent launch of the F-150 Lightning represents a crucial turning point for Ford. Ford’s approach to designing the F-150 Lightning and the model’s strong initial reception bode well for the iconic automaker’s long-term success.
The linchpin of Ford’s electric plans
At Ford’s recent investor day, executives made it clear that the company is going “all in” on EVs. The automaker plans to invest over $30 billion in EVs and battery technology through 2025, laying the foundation for it to transition an estimated 40% of its annual sales volume to EVs by 2030.
Ford began its push to become relevant in the EV market with the Mustang Mach-E, which it began delivering at the very end of 2020. The Mustang Mach-E got a strong reception from customers, quickly racking up tens of thousands of reservations. However, the Mach-E is targeting a relatively niche high-performance market, limiting its sales potential.
By contrast, full-size trucks are Ford’s bread and butter. In 2018 and 2019 — before supply constraints started to weigh on sales — Ford typically delivered about 900,000 F-Series trucks annually in the U.S. alone. This represented 36% to 37% of its annual volume domestically and an even higher percentage of its revenue. Many analysts estimate that F-Series trucks generate virtually all of Ford’s profits. Ford
Is Ford making the right decisions for its shareholders in they way they are going about their foray into Electric Vehicles?
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