Ford Motor Company (F) Stock Could Get a Jolt from Renewed EV Efforts

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Without a doubt, when investors and consumers think of electric vehicles, they overlook the fact that the Focus from Ford Motor Company (NYSE:F) comes in an all-electric version. Owners of F stock should know, however, that the company’s finally starting to get serious about closing its electrification and self-driving gap with its more-recognized rivals.

Ford Motor Company (F) Stock Could Get a Jolt from Renewed EV Efforts
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Sure, Tesla Inc (NASDAQ:TSLA) is the first name to come to mind when it comes to the EV market. Ditto for self-driving vehicles. General Motors Company (NYSE:GM) has some decent exposure to the former market with its Chevrolet Bolt, and tinkers (a bit) with the idea of autonomous cars. Ford, sadly, gets just a shrug

Ford is Turning Up the Heat

It’s been one of the more quiet frustrations of F stock holders to see a general lack of disinterest in what’s obviously the shape of things to come.

For perspective, through August, Tesla sold 14,770 of its Model S vehicles in the U.S.. The Chevy Volt, not the Bolt EV, is a close second at 13,895 units sold so far in 2017. The Bolt EV holds the fifth-place spot at 11,670 units, right behind the 12,170 TSLA Model X’s sold, which was right behind the 12,170 Prius Primes from Toyota Motor Corp (ADR) (NYSE:TM) so far this year.

Ford’s all-electric Focus (there are two Ford hybrids that fared better) is barely in the race. It holds the #17 spot, with only 1,337 all-electric vehicles sold in the country this year.

Sales of the EV were similarly unimpressive outside of the U.S. In fact, the company told F shareholders earlier this year that it would stop making the all-electric Focus at its Saarlouis, Germany plant after only selling 61 of them in Europe last year.

However, new CEO Jim Hackett sees more of an immediate future in electric vehicles than the company had before he took the helm in May. “We don’t want to cede the future to anybody else,” he said recently, referencing not just electric cars and autonomous driving, but mobility in general.

One of the pillars of that renewed mission, of course, is still the development of better EVs. That will begin in 2020, with Ford’s first car built from the ground up to be an electric car; the all-electric Focus is simply a combustion-powered vehicle with electric motors and batteries in it.The new design, which is so far an unnamed crossover utility vehicle, is expected to boast more than a 300-mile range, putting pressure on anything Tesla or GM will have on the market at that time. It will be sold in North America, Europe and Asia.

 

Oh yeah… Ford’s Lincoln division also recently vowed to make all-electric versions of all of its vehicles by 2020, underscoring how serious the company is about being an EV powerhouse. If nothing else, a willingness to tackle the logistics of dropping batteries and electric motors into so many different kinds of cars and SUVs is a testimony of the company’s new mindset.

As for self-driving cars, Ford is even further behind on that front, but has stepped up its efforts to a more serious level.

Case in point: Last month, the company told F investors as well as the world’s consumers that it had set a target of 2021 for a fully autonomous vehicle for the purpose of ride-sharing would be available in meaningful quantities. It’s also doubled staffing at the relevant technological centers, effectively putting its money where its mouth is.

Bottom Line for F Stock

Hackett’s ambitions are lofty, to be sure, and as the case with most forays into new territory, it will likely take longer to reach its goals, and cost more than originally planned to get there. It should also be made clear that an “off the lot” self-driving vehicle from Ford may not be a widespread reality — if a reality at all — for consumers come 2021. Ford Motor’s R&D partnerships suggest the idea is intended to mostly be one that taps into the ride-sharing phenomenon recently put into motion. (Its electric vehicles should be easier to purchase then, however.)

Whatever the timeline though, while F stock holders know all too well that while the company has been strangely late to the party, it’s at least arrived, putting other players on notice. Though it remains to be seen how much it will really matter, and when, at least you can legitimately add Ford to the discussion of who will be shaping the future of transportation.

As of this writing, James Brumley held a long position in Ford Motor. You can follow him on Twitter at @jbrumley.


Article printed from InvestorPlace Media, https://investorplace.com/2017/09/ford-motor-company-f-stock-could-get-a-jolt-from-renewed-ev-efforts/.

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