Ford Stock Pops on F-150 Lightning Plans. 6 Things to Know.

Shares of Ford (NYSE:F) increased by a staggering 143% during 2021, and it seems the gains are still coming. Today, shares of Ford stock are up by over 11% after the legacy automaker made a massive announcement concerning its upcoming electric F-150 Lightning pickup truck.

Ford (F) logo badge on grill of car
Source: JuliusKielaitis /

Ford announced that it would be almost doubling its current production of the F-150 Lightning amid an increase in demand. Even better, this is the second time that Ford announced that they would doubling production. The initial output for the pickup truck was 40,000 units per year about one year ago. Now, that figure has skyrocketed to 150,000 units per year by mid-2023 as consumers capitalize on the rising trend of EVs.

While Ford has yet to start taking orders for the F-150 Lightning, the company has received 200,000 non-binding reservations that cost $100 each. In fact, demand was so great that the automaker had to halt the number of reservations at 200,000. This certainly bodes well for F stock.

Ford stated that it is currently utilizing a “wave-by-wave reservation process.” What this means is that reservation holders should expect to receive an email or notification on their Ford account over the next few months to start the official ordering process. However, since the 200,000 orders are non-binding, investors will want to stay up to take on the actual order count.

Investors are definitely happy about this news, as evident by the stock price movement today. Furthermore, the increased production target has only made investors more interested in Ford stock. Let’s jump into the details on what this means for the legacy automaker.

Ford Stock: What to Know About the Increased F-150 Output

  1. Ford plans on achieving its F-150 Lightning production target through its facility in Michigan.
  2. Additionally, the automaker plans to start the ordering process this Thursday.
  3. Prices for the F-150 Lightning will have a wide range. The work-oriented version of the truck will start at $39,974. Meanwhile, the consumer-version of the truck will start at $52,974 and cap out at around $90,000.
  4. Furthermore, Ford partnered with Sunrun (NASDAQ:RUN) to offer customers an at-home charger. Ford is also offering an inverter for the F-150 Lightning that can provide enough power to power a home during an outage.
  5. The F-150 Lightning will also boast a front truck, or “frunk,” that is commonly seen in EVs. The frunk will be equipped with four 110-volt outlet plugs, two USB ports, and can hold up to 400 pounds.
  6. Bank of America analyst John Murphy increased his price target on F stock to $26 from $22. The analyst believes Ford is well on its way in its turnaround strategy and called the increased production announcement “an encouraging proof point.”

On the date of publication, Eddie Pan did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the Publishing Guidelines.

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