E-150
The Russian invasion of Ukraine has showed the world how vital electric vehicles are for the future. Oil has proved to be too volatile a commodity to rely on, and we are all familiar with its environmental impact. Gas prices have become uncontrollably high, leaving citizens with an unnecessary problem to deal with.
At this time, Ford is starting to produce their electric F-150 pickup truck, known as the Lightning. The F-150 is already a best-selling vehicle in the United States, so it makes sense that they would make an electric version. According to the company, there are currently 200,000 reservations, but they are obviously struggling to meet with demand due to shortages in many parts of the car, with semiconductors being the most notable one. This gives Ford a boost over its competitors, the main ones being Tesla’s abstract Cybertruck, GM’s electric Chevy Silverado, which is scheduled for next year, and Stellantis’ Ram EVs that are set for 2024. However, the price of these vehicles might have to increase to combat increased production costs as many hurdles are in the way. For one, there is an ongoing battery shortage according to the CEO of Rivian, a big player in the EV industry who have cut their vehicle production projections. Additionally, the prices for battery ingredients like lithium have jumped by a lot in the past few weeks, but Ford plans to solve this by partnering with SK Innovation. Ford’s stock is at a 40 percent discount from its highs, and future problems could be customer demand as higher interest rates will dissuade more people from taking out car loans.
I am not a financial advisor and my comments should never be taken as financial advice. Investments come with risk, so always do your research and analysis beforehand.
