DETROIT – Ford Motor on Tuesday stated it plans to nearly double annual production capability of its upcoming electrical F-150 pickup to 150,000 automobiles per yr by mid-2023, citing sturdy shopper demand.
The improve is a constructive signal of demand for the F-150 Lightning in addition to electrical automobiles on the whole but additionally exhibits Ford considerably underestimated demand for the truck, inflicting it to now scramble to enhance manufacturing of it. This is the second time Ford has stated it plans to double production of the car, which is due out within the spring. Initial output was set for about 40,000 items.
“The reception of this vehicle has been absolutely incredible,” Kumar Galhotra, Ford president of the Americas & worldwide markets, stated Tuesday on CNBC’s “Squawk Box.”
Ford’s inventory reached a new 52-week excessive day of $24.56 a share Tuesday earlier than closing at $24.31, up by 11.7%. It was the inventory’s highest day by day proportion improve since June 2020, in accordance to FactSet.
BofA Securities analyst John Murphy elevated the worth goal for Ford Tuesday to $26 a share, up from $22, citing the automaker’s production improve. In a word to traders, he referred to as it “an encouraging proof point” within the firm’s beforehand introduced Ford+ turnaround technique.
Ford’s production plans come earlier than the automaker begins taking orders for the car on Thursday. The firm obtained about 200,000 nonbinding reservations for the truck earlier than it stopped taking the preorders final month.
At that point, Ford CEO Jim Farley informed CNBC that the corporate was doing “whatever it takes” to double production capability for the F-150 Lightning.
“We had to stop reservations, we got so many,” Farley informed CNBC’s Jim Cramer. “We stopped at 200,000, and those are orders. Hard orders.”
Ford stated will probably be implementing a “wave-by-wave reservation process,” with reservation holders being requested to look ahead to an invite by way of electronic mail from Ford or to log into their Ford.com account over the subsequent few months to place an order for his or her car.
This week is the ultimate pre-build part earlier than transitioning into mass production of F-150 Lightning vehicles for retail prospects and F-150 Lightning Pro for industrial prospects, the corporate stated.
Ford’s production plans come a day earlier than General Motors is scheduled to reveal an electrical model of its Chevrolet Silverado. The pickup is predicted to compete extra instantly with the F-150 Lightning than its GMC Hummer EV, which just lately began transport to customers. The Silverado is not anticipated to go on sale till 2023.
Pricing for the F-150 Lightning, very like the normal pickup, has a variety. A piece-oriented model of the truck will begin at $39,974. More consumer-centric fashions will begin at $52,974 and high out at round $90,000.
– CNBC’s Michael Bloom contributed to this report.